bads

Bads are a concept in welfare and environmental economics used to describe items or outcomes that produce disutility or harm. Unlike goods, which create value for consumers, bads impose negative value on those affected. They can be tangible, such as pollution, noise, or waste, or intangible, such as risk, danger, or excessive waiting times.

Economists analyze bads through the lens of negative externalities and social costs. Because bads raise social costs, policy instruments often aim to reduce them, for example through taxes or charges that reflect the external cost (Pigouvian taxes), regulations, standards, or cap-and-trade systems for emissions. Pricing and regulation encourage mitigation and abatement.

Measurement and interpretation: The magnitude of a bad is context-dependent and can be expressed in physical units (pollutant tons, decibels, hours of delay) or in monetary terms via willingness to pay to avoid the bad. Valuation can differ among individuals and over time, and some effects are public goods or externalities that complicate assessment.

Examples and scope: Bads include environmental pollutants, noise pollution, traffic congestion, hazardous waste, and health risks. The concept helps economists compare policies by their effectiveness in reducing disutility and by accounting for both private and social welfare impacts.