Environmental Economics 6th Edition by Martha k Field,Barry Field

Exercise 5

Consider the example of the three homeowners around the lake (the ones depicted in Table 4.2 ). Suppose the lake was cleaned up to the efficient level and that the total costs of the cleanup were shared equally among the homeowners (stick to integer values here). Will all three homeowners be better off? What problems does this bring up about sharing the costs of public goods?
Reference Table 4.2: