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Assignment 2 - Admission/Application Essay Example

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In order for the public good to be characterized as pure it needs to have two features called “non-exclusive” and “non-rival. However, in case of impure public goods there is a…
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Assignment 2
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Assignment 2

Download file to see previous pages... It is this property which makes rivalry in the consumption possible. For example access to recreational facilities cannot be restricted to specific individuals and there will always be rivalry in the consumption. The issue becomes more complex when the public goods are international. International public goods are those whose benefits accrue to more than one country. One of the typical characteristics of impure public good is that the level of utility falls with the increase in the number of users (Arriagada and Perrings 798-806).
Biodiversity has been characterized as an impure public good in the existing literature. The rationale behind this is that if there are more than one providers of biodiversity conservation then each entity generates local benefits from its own conservation effort. Simultaneously they are also benefitted from the conservation efforts of others involved in the same business.
One of major issues in case of impure public goods is that there is significant level of externalities associated with them. This issue makes it very difficult to control property rights for the impure public good. The issue is far more complex when the good is global in nature. Marine Biodiversity can be definitely treated as an impure public good that transcends boundaries. This is because this good is particularly beyond the national jurisdiction of any single country which makes it difficult to control. Market failure can also be associated to the externalities arising in the provision of public goods (Bulte, Kooten and Swanson, “Economic Incentives and Wildlife Conservation). In case of impure public good market failure can occur mainly because marginal social benefits exceed the marginal social costs of provision of the goods (Arriagada and Perrings 798-806).
In case of impure public goods two types of externalities can be associated. The first one occurs when the supply function fails to incorporate ...Download file to see next pagesRead More
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