Environment as public goods | rival goods | non-rival goods | market failure | quasi public goods

#ECONOMICFORUPSC #Vishnueconomicsschool #NTANETECONOMICS Download my app Vishnu ECONOMICS SCHOOL from play store or link is given below https://play.google.com/store/apps/details?id=co.jarvis.ves TELEGRAM ;- https://t.me/Vishnueconomicsschool WHATSAPP https://chat.whatsapp.com/Dd4096hYSALLvZP4BGeZfg APP https://play.google.com/store/apps/details?id=co.jarvis.ves WEBSITE www.vishnueconomicsschool.in We cover 1. UPSC MAIN ECONOMICS OPTIONAL 2. NTA – NET ECONOMICS 3.…

Environment as public goods | rival goods | non-rival goods  | market failure | quasi public goods

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#ECONOMICFORUPSC #Vishnueconomicsschool #NTANETECONOMICS

Download my app Vishnu ECONOMICS SCHOOL from play store or link is given below
https://play.google.com/store/apps/details?id=co.jarvis.ves

TELEGRAM ;- https://t.me/Vishnueconomicsschool

WHATSAPP https://chat.whatsapp.com/Dd4096hYSALLvZP4BGeZfg

APP https://play.google.com/store/apps/details?id=co.jarvis.ves

WEBSITE www.vishnueconomicsschool.in

We cover
1. UPSC MAIN ECONOMICS OPTIONAL
2. NTA – NET ECONOMICS
3. INDIAN ECONOMIC SERVICES
4. RBI EXAM 5 NABARD EXAM
6. DSSSB PGT ECONOMICS
7 KVS/ NVS PGT ECONOMICS
8.PGT ECONOMICS FOR OTHER STATE
9 LECTURER UPHESB
10 IGNOU MA ECONOMICS
11 Delhi UNIVERSITY B.A, B.COM, ECO H, GE, ECO H
12 MDU UNIVERSITIES
13 MA ECO, M.COM, ECO H, BBE, BBA, MBA,
14 . CBES BORAD FOR 11 AND 12
15 NIOS FOR CLASS 12
16. ICSE CLASS 12
17 XI , XII FOR DIFFERENT STATE BOARD

Various climate analytics underscore the importance of changing environmental behaviour in
order to control and manage global environmental problems (Stylianou, Rincon, Walton,
n.d.). They state that if countries continue their current behaviour, the average global
warming in the year 2100 will be increased with 4.5˚C, while an augmentation of 2˚C already
leads to a substantial and dangerous climate impact. With regard to these alarming prospects,
several summits have been held to make worldwide agreements among countries by pledges
made on all conferences of parties (COP). The latest assembly took place in December 2015
(COP21) (Davenport, 2015). However, during this summit it became clear many countries
did not met their promised goals and there still has to be done a lot to combat the
environmental problems. While environmental issues are worldwide problems, causes can be
found, at least to some extent, in people’s daily behaviour (Ostrom, 2014, Nordlund &
Garvill, 2002; Steg & Vlek, 2009). Therefore, in order to solve global environmental
problem, changes in micro-level behaviour is necessary.

The group theory and its mechanism of group-oriented behaviour, as previously elaborated
on, differs when taking group sizes into account (Olson, 1977; Hardin, 1982). Both Olson and Hardin state that small groups are more likely to bring forth group-oriented behaviour and achieve group goals. They argue it is clearer within small groups if individuals contribute to the public good or not. Groups that are too large for individual actions to be noticeable for group members, are referred to as latent groups (Olson, 1977). In these groups, individuals will not know if one member makes no contribution. As mentioned earlier, environmental impacts concern the entire world, whereby it is necessary for this study to consider latent groups instead of small groups2 . Olson (1977) and Hardin (1982) argue that within these latent groups, free-riding behaviour occurs, the problem of collective action.
In order to overcome this problem of collective action, Olson and Hardin underscore
the importance of individual encouragements, which they call selective. They state that
selective incentives are able to turn a situation where cooperation is irrational into a situation where collective action is rational for individuals.

Since no-one can be excluded from obtaining the benefits from the public
good and individuals have little incentive to contribute voluntarily, people need to be
motivated by personal inducements. He emphasizes that only separate and selective
incentives will stimulate rational individuals to act in a group-oriented way. These incentives need to be ‘selective’ so that individuals who do not contribute to the attainment of the group’s interest will be treated or encouraged differently from those who do. For example, person A
may be especially encouraged by financial gains, while person B might not care for money
and is motivated by his internal feeling of wanting to do the right thing.
Furthermore, these incentives can be divided in three different dimensions of selective
incentives, namely; selective economic incentives, selective social incentives and selective
psychological incentives. First, selective economic incentives may be defined as extra
payment when participating and monetary sanctions when objecting (e.g. funding for solar
panels or extra payment for collecting non-separated garbage) (Olson, 1977). Besides direct or tangible financial impacts this study acknowledges time as selective economic incentive as well since time has to be invested or may be gained by contributing (e.g. recycling takes time or using public transportation may save time in traffic). The second dimension, selective

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