Question

Why do governments provide environmental protection? Include the concepts of public services and the free-rider problem in your explanation. (1-2 sentences)(2 points)

Answer 1

Governments provide environmental protection because clean air, water, and ecosystem services are public goods—non‑excludable and often non‑rival—so markets tend to underprovide them. Because individuals and firms can free‑ride (benefit without paying), governments supply and fund environmental protection as a public service and use regulation, taxes, and subsidies to ensure adequate provision.