A public bad, in

economics Economics () is a behavioral science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and interac ...

, is the symmetrical opposite of a public good.

Air pollution Air pollution is the presence of substances in the Atmosphere of Earth, air that are harmful to humans, other living beings or the environment. Pollutants can be Gas, gases like Ground-level ozone, ozone or nitrogen oxides or small particles li ...

is the most obvious example since it is non-excludable and non-rival, and negatively affects welfare.For current definitions of public bads see: Charles D. Kolstad, ''Environmental Economics'' Second Edition . Whereas public goods are typically under-provided by decentralized decision making (the market), public bad will generally be over-provided, since the parties generating the public bad do not account for the negative effects (or

externality In economics, an externality is an Indirect costs, indirect cost (external cost) or indirect benefit (external benefit) to an uninvolved third party that arises as an effect of another party's (or parties') activity. Externalities can be conside ...

) imposed on others. One possibility to mitigate the existence of public bad is the intervention of a third party, typically the state. In " green economics", it is a

good In most contexts, the concept of good denotes the conduct that should be preferred when posed with a choice between possible actions. Good is generally considered to be the opposite of evil. The specific meaning and etymology of the term and its ...

that produces socially undesirable results (or an externality in standard economics). Most "green economists" advise

measuring Measurement is the quantification of attributes of an object or event, which can be used to compare with other objects or events. In other words, measurement is a process of determining how large or small a physical quantity is as compared to ...

such impacts back to the present from the seventh generation. Thus in the golf course example, both the recreation and the negative impacts from deforestation, associated

habitat In ecology, habitat refers to the array of resources, biotic factors that are present in an area, such as to support the survival and reproduction of a particular species. A species' habitat can be seen as the physical manifestation of its ...

and

biodiversity loss Biodiversity loss happens when plant or animal species disappear completely from Earth (extinction) or when there is a decrease or disappearance of species in a specific area. Biodiversity loss means that there is a reduction in Biodiversity, b ...

, and

pesticide Pesticides are substances that are used to control pests. They include herbicides, insecticides, nematicides, fungicides, and many others (see table). The most common of these are herbicides, which account for approximately 50% of all p ...

toxicity would be estimated across those generations and some amortization applied to determine whether the golf course was a public benefit or a public bad from the point of view of that seventh generation. Green economists argue that the costs of public bads are hidden as externalities from the businesses that cause them — meaning the market is not working correctly. The legal challenge is to create a system that takes into account these costs. The

United States Environmental Protection Agency The Environmental Protection Agency (EPA) is an independent agency of the United States government tasked with environmental protection matters. President Richard Nixon proposed the establishment of EPA on July 9, 1970; it began operation on De ...

is an example of an attempt to make sure the costs of public bads are taken into account, although some groups on the right and left have criticized the value of its efforts.

References

{{DEFAULTSORT:Public Bad Welfare economics Bad

See also

References