Merit and De_Merit Goods

We had an interesting brainstorming session in our AS micro today! We wanted to discuss which examples of consumption and/or production deserved the sobriquet of merit or de-merit goods. The point was made very early on that what each of us regards as socially beneficial or socially damaging depends very much on our own value judgements. And the other aspect of merit and de-merit that we emphasised was the ever-present issue of information failure. Just today there was an article in the Telegraph about how “taking aspirin can cut breast cancer risk by 20%” and at the same time, we know the risks of addiction to painkillers and other treatments.

This was the list of merit and de-merit goods that my two groups came up with - fuelled it has to be said by a plentiful supply of mini doughnuts and chocolate cookies from Sainsburys! I used this as an example. We wanted to test doughnuts and consider their social benefits (!) but the plastic packaging and waste we created also has a social cost. I have linked to some relevant BBC news stories as well.

Merit goods

Brain foods (berries, broccoli, fresh fruit, fish oils)
Education (including life long learning)
Health services (including palliative care)
Nutritional programmes for under-weight babies
Early years education and high quality child care
Membership of clubs and associations
Giving blood
Organ donation
Using renewable energy
Car sharing / car pooling
Flood relief schemes
Wind farms
Voluntary work
Condoms and other forms of safe sex

De-Merit Goods

Cigarettes
Alcohol abuse
Garlic and baked beans (!)
Food additives (link is to BBC news audio)
Date rape drugs
Guns
Plastic bags and other forms of plastic waste
High fat and high salt convenience foods
Violent video games
CFCs
Vandalism
Over-use of fertilisers / chemicals in farming
Junk mail / spam
Speeding drivers and drunk driving
Gambling addiction
Night clubs and binge drinking
Burning dirty fossil fuels
Tabloid newspapers!

An interesting list, and one completely open to debate and criticism! But I was pleased that the students veered away from the comfort zone of just talking about education and health. They are now heading away to prepared small group presentations on a topic of their choice looking at the private and external costs and benefits of merit and de-merit goods.