The case for government intervention with public goods
Overcoming the Free-Rider
Direct provision of a public good by the government can help to overcome the free-rider problem which leads to market failure
The non-rival nature of consumption provides a strong case for the government rather than the market to provide and pay for public goods.
Many public goods are provided more or less free at the point of use and then paid for out of general taxation or another general form of charge such as a licence fee.
State provision may help to prevent the under-provision and under-consumption of public goods so that social welfare is improved.
If the government provides public goods they may be able to do so more efficiently because of economies of scale.