How do people usually respond to externalities regarding pub

How do people usually respond to externalities regarding public goods? Please illustrate with an example from recent events that have affected many. Thank you, no copy and paste. Thank you.

Solution

Externality is created when action taken up by one individual affects the other individuals in terms of their well beings. Public goods are those goods that are shared and consumed by everyone. Here, public goods are developed by specific contributions done by some of the people and benefits derived are consumed by everyone. For example, Tax payers contribute through taxes and a public hospital is built.   

Here, contributors are only those people who pay taxes. Though, everyone is getting benefitted from the services offered by public hospital. It builds the case of externalities with public goods. The same also happens when individuals are negatively affected by the public goods.

Here, People respond aggressively to negative externalities offered by public goods. Recent cases of pollution related problems caused by the public development programs has steered many movements across the globe. But, People don’t talk about the good externalities developed from the public healthcare program in the same length.

Another example is of new tax imposed upon people. Individuals who are not paying tax, want to enjoy the benefits but they react negatively if initiatives are taken to bring them under tax payment slab by a new act.

Thus, People exhibit asymmetric behavior towards different externalities generated from the public goods.