Non- Exclusion:

Non-exclusion means that it is impossible to confine the benefits of the good (once produced) to selected persons. In other words, it is impossible to exclude anyone from enjoying the benefits of a public good.  A person will benefit from the production of the good,  regardless of whether he or she pays for it. . No one can willingly exclude himself from their remit or from defraying its cost (Positive or negative externalities)

Example

a) People without television sets or without the subscription of the cable network, will be unable to watch programmes. They can only watch by subscribing the cable network or by purchasing a satellite or DHT TV. This exclusion is possible at a moderate cost.

b) National defence - your neighbours might be deported and thereby excluded from securing any benefits from defence effort.

c) Flood control project - some people may be excluded from securing its benefits.

d) Cost for electronics road pricing have fallen dramatically, paving the way for detailed billing based on actual use.

e) Street lights will give benefit to all the persons, irrespective of payment.

f) Broadcasters can sell individual access to their programming.

Thus whether a good is non-exclusive is ultimately a matter of degree because in some cases the cost of exclusion is higher than in others.

The existence of public goods creates problems for price system. A good, which is non- rival in consumption, can also be non- exclusive. i.e. they often occur simultaneously. Once a public good is produced, a number of people will automatically benefit, regardless of whether or not they pay for it. (Because they cannot be excluded), so it is difficult for private producers to provide the good. Unless producers can collect money for supplying the good, they will be unable to cover their cost.