Growing Importance of Global Public Goods: The Case of Climate Change

Abstract

A PUBLIC GOOD is a good whose consumption by some individual(s) does not diminish its availability to other individuals. Examples are national defence, radio broadcast, or clean air. They can be made available to additional consumers at minimal or no cost. As markets cannot price these goods, markets fail in the provision of public goods. Public goods have, therefore, to be provided by the public sector or the government and cannot be left to the market and private incentives.