Local public good

A local public good is a service or commodity provided by the government or a community that benefits all residents within a specific geographical area.
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Updated on Jun 24, 2024
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3 key takeaways:

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  • Local public goods are services or commodities provided by the government that benefit all residents within a specific area.
  • Examples include public parks, street lighting, and local law enforcement.
  • These goods are non-excludable and non-rivalrous within the community.

What is a local public good?

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A local public good is a service or commodity provided by the government or a community that benefits all residents within a specific geographical area. These goods are characterized by their non-excludability and non-rivalrous consumption, meaning they are available to all members of the community and one person’s use does not diminish another’s.

Characteristics of local public goods

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Local public goods have several distinctive features:

  • Non-excludability: It is not feasible to exclude anyone from using the good once it is provided. For example, everyone in the community can enjoy clean streets and public parks.
  • Non-rivalrous consumption: One person’s use of the good does not reduce its availability to others. Street lighting, for example, provides illumination to everyone in the area without being depleted.

Examples of local public goods

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Local public goods include a variety of services and amenities that enhance the quality of life within a community. Examples include:

  • Public parks: Open green spaces where residents can relax, exercise, and socialize.
  • Street lighting: Ensures safety and security for pedestrians and drivers at night.
  • Local law enforcement: Police services that maintain public order and safety.
  • Public libraries: Provide access to books, internet, and educational resources for all community members.
  • Waste management: Regular garbage collection and recycling services that keep the community clean.

Importance of local public goods

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Local public goods are essential for the well-being and development of communities. They contribute to:

  • Public health and safety: Services like sanitation and law enforcement ensure a healthy and secure environment.
  • Community cohesion: Public spaces and services facilitate social interaction and community engagement.
  • Economic development: Infrastructure and amenities improve the attractiveness of an area, encouraging businesses and residents to settle there.

Challenges in providing local public goods

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Providing local public goods comes with several challenges:

  • Funding: Securing adequate financial resources to maintain and improve public goods is a constant concern.
  • Equitable distribution: Ensuring all parts of the community have equal access to public goods can be difficult, particularly in diverse or sprawling areas.
  • Maintenance: Regular upkeep and modernization of public goods require ongoing effort and investment.
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  • Public goods and services
  • Local government funding
  • Community development and planning
  • Public infrastructure management
  • Urban economics and public policy

Sources & references

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