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Chapter 5: Problem 5

In writing about the increased popularity of national parks in the United States, such as Yosemite, Yellowstone, and the Grand Canyon, environmental economist Margaret Walls wrote: When one person's visit to a park doesn't appreciably diminish the experience for others, the fee to use the park should be zero. That doesn't apply when the public good starts to experience congestion problems ... the Park Service should ... [charge] a significantly higher fee at the most popular parks during the summer months. Are Yosemite and other national parks public goods? Briefly explain. Source: Margaret A. Walls, "Protecting Our National Parks: Entrance Fees Can Help," Resources, No. \(193,\) Fall \(2016 .\)

Short Answer

Expert verified
National parks like Yosemite and others can be considered public goods when they are not congested because they are non-excludable and provide non-diminished benefits. However, when congestion occurs, they become more alike to common goods which require management of resources, such as the imposition of entrance fees in peak times.

Step by step solution

01

Define public goods

A public good is an item whose consumption is not decided by the individual consumer but by the society as a whole, and which is financed by taxation. The two main characteristics of public goods are non-excludability, which means it's not possible to exclude people from using the good, and non-diminished benefit, which means the cost does not increase with the quantity of consumption.
02

Apply definition to national parks

According to the definition, in the absence of congestion, national parks can be considered public goods because they are non-excludable and provide non-diminished benefits. Everyone is allowed to use them, and one person enjoying the park does not interfere with another person's enjoyment of it.
03

Consider congestion

However, as stated by Margaret Walls, when parks start experiencing congestion, they no longer fully align with the concept of a public good. During peak times, someone's enjoyment of the park could detract from another person's experience, introducing the concept of rivalry into the scenario.
04

Conclusion

Therefore, while national parks like Yosemite and others have characteristics of public goods, they are not pure public goods, as they can become congested. When this occurs, they become more similar to a common good, which gives rise to the need for management of resources, such as the introduction of entrance fees during peak times.

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