Examples of collective goods include clean air, public parks, and national defense. These goods are all non-rival and non-excludable. Clean air, for example, can be enjoyed by everyone, regardless of whether or not they have paid for it. Similarly, it is difficult or impossible to exclude people from using public parks or national defense, even if they have not paid for them.
Collective goods are often provided by the government. This is because the private sector has little incentive to provide collective goods. Since collective goods are non-rival and non-excludable, it is difficult for private firms to charge for them. As a result, the government often provides collective goods in order to ensure that they are available to everyone.
The provision of collective goods is often funded through taxes. This is because taxes are a way of spreading the cost of collective goods across all members of society. This ensures that everyone has access to collective goods, regardless of their income level.
Collective goods are essential for a well-functioning society. They provide a number of benefits to society, including:
* They promote economic efficiency. Collective goods can help to reduce market failures by providing goods and services that the private sector is unable or unwilling to provide.
* They promote social justice. Collective goods can help to ensure that everyone has access to essential goods and services, regardless of their income level.
* They promote environmental sustainability. Collective goods can help to protect the environment by providing goods and services that reduce pollution and conserve natural resources.
Overall, collective goods are an important part of a well-functioning society. They provide a number of benefits to society and they help to ensure that everyone has access to essential goods and services.