Pleasure boaters enjoy the use of waterways, but sometimes run into problems and need rescue. Coast Guard boats, supported by tax revenue, are often used for rescue. Is it likely that there will be an efficient amount of boating and rescuing?

No. The full cost of boating includes the cost of rescue, based upon the amount of rescue that a typical boat ride requires. Rescue is supported by general tax revenue, not a charge on boats or other charges directly paid by the boaters. The social cost of the boat trips is below the private cost, resulting in too many boat outings. An appropriate response is to charge boaters a fee, based on usage that covers the cost of providing rescue services.