Public good
Also known as: general good · social good · community good · collective good
- 1Defined as being both non-excludable and non-rivalrous.
- 2Typically funded by taxation and provided by the state.
- 3Allows for simultaneous use by multiple individuals.
- 4Must be valuable to multiple users to be economically significant.
In economics, a public good is a commodity, product or service that is both non-excludable and non-rivalrous and which is typically provided by a government and paid for through taxation.
Connections1
Economic counterpart to the philosophical concept of the common good
While the common good is a broad ethical and political term, public goods are specific economic goods that are non-excludable and non-rivalrous, often requiring collective action.
In economics, a public good is defined by two specific characteristics: it is non-excludable and non-rivalrous. This means that individuals cannot be prevented from using the good, and one person's consumption does not reduce the availability or quality of the good for others. These goods are typically provided by the government and funded through taxation.
Inscription on one side of the Fountain of Piazza Torlonia (1899) in the city of Avezzano (Province of L'Aquila, Abruzzo, Italy). It says: "Built and donated by Anna Maria and Giulio Torlonia, as an embellishment of the city and a public good"Wikimedia Commons; Barbaking; Own work; CC BY-SA 3.0; Wikimedia Commons: Category:Public goodsTeston, St Peter & St Paul: Ramsay monument A monument on the outside wall of the church to James Ramsay, former Vicar of the parish and campaigner against the slave trade, who died in the Revolutionary year of 1789. The full text of the monument, in typically florid 18th century style, reads: "While firm integrity, u...Wikimedia Commons; Stephen Craven; From geograph.org.uk; CC BY-SA 2.0; Wikimedia Commons: Category:Public goodsImage attached to Public good on Wikidata.Wikimedia Commons; CC BY-SA 3.0; Wikimedia Commons; Wikidata P18 (image) Because these goods can be used simultaneously by multiple people, they must provide value to more than one user to be economically relevant. This distinguishes them from other types of resources, such as common goods, where consumption by one person might eventually deplete the resource for everyone else.