Positive Externality Example: A Beautiful Garden
A well-kept private garden provides a positive externality by bringing pleasure to neighbors and passers-by. [1, 2, 3] However, it is not typically considered a public good because the owner, who pays for its upkeep, also enjoys a much greater personal benefit than any other individual. This example highlights the distinction between a general positive externality and a public good, where private benefits for the provider are usually low. Furthermore, arranging legal payment for the external benefit is impractical, as it would require a court to measure the value of pleasure for each passer-by. [4]
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Positive Externality Example: A Beautiful Garden
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Positive Externality Example: A Beautiful Garden
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