The free market fails in providing public and common goods  A ‘common good’ is a resource which has finite but replenishable supply but which is by its nature ‘non-excludable’ (meaning it’s hard to exclude individuals from using the resource). One example is the stock of fish in the sea. If all fishermen would refrain from overfishing, the fish population would have time to restore itself. But each individual fisherman has an incentive to capture and sell as much as possible. Since in a free market, there is no government coordinating supply and demand, each fisherman acts on their individual incentives. The result is rapid, irreversible depletion of the common good (Tragedy of the commons, 1968).  A ‘public good’ is a resource which is also ‘non-excludable’ but is also ‘non-rivalrous’, that is a good whose consumption by one consumer still allows simultaneous consumption by other consumers. One example of this is the air we breathe: every breath I take does not prevent you from taking a breath, nor can I feasibly exclude you from breathing. Other examples of public goods are schools, roads and national defense. Public goods suffer from the ‘free rider’ problem: once the good is produced, no one has an incentive to pay for the good. Since the good is non-excludable, no one can prevent someone from using it. This also leads to what economists call ‘negative externalities’: industries can freely pollute the air we breathe and not bear the costs for it. The issues of climate change are a direct example of this: corporations aren’t forced to pay for the negative externality of emitting greenhouse gases, and so continue doing it.