De-merit goods - possession of laughing gas to be made illegal

Nitrous oxide is the second most commonly used drug among 16 to 24-year-olds in England. The UK government has announced that possession of the drug will be made illegal by the end of 2023.

What are de-merit goods?

De-merit goods are products that are thought to have negative effects on society or the individual consumer. These products typically have negative externalities - costs that are borne by society as a whole, rather than just the individual consumer. Examples of de-merit goods include cigarettes, alcohol, and illegal drugs. These products are often heavily taxed or even banned in some countries, as the social costs associated with their consumption are thought to outweigh their benefits. Basically, they're the opposite of merit goods, which are products or services that have positive externalities and are therefore considered beneficial to society.

Here's the deal with laughing gas:

• Positive: It's used medically as an anesthetic and for pain relief during labour. It can also provide a sense of euphoria and relaxation in lower doses, which some people use recreationally.
• Negative: In higher doses, it can cause disorientation, unconsciousness, and even death. It can also be addictive and contribute to health issues like vitamin B12 deficiency and nerve damage.

De-merit goods are a great example of how economic policy and societal values can intersect. We're weighing the potential benefits of the good against the negative consequences of its use. There's also the question of whether we should use economic or legal incentives to discourage their use, and to what extent.