Readers Question: Why government, rather than private industry, is required for an effective mosquito eradication program?
An effective mosquito eradication program is an example of a public good.
If you exterminate all the mosquitos it has the characteristics of
- Non rivalry. – When you benefit from living in an area free of mosquito’s it doesn’t reduce the benefit to anyone else. (unlike a private good where if you consume it, you reduce the amount available)
- Non Excludability – Once provided you can’t stop anybody benefitting from it. I
If you get rid of all mosquitoes and prevent malaria, then everyone in the community will benefit.
However, in a free market the service may not be provided; this is because you will benefit even if you don’t pay and contribute to the program. Therefore there is an incentive to wait for others to pay for the program and then ‘free ride’ on the efforts of others.
A private firm will therefore, struggle to get sufficient people to pay.
This is why the government can pay for it out of general taxation. This forces everyone to pay.
This contrasts to a private good, where the benefits accrue to a certain individual and there are market incentives to pay for it.