Analyze a policy that addresses a negative externality
For this discussion, analyze a policy that addresses a negative externality (Chapter 6 of the recommended text has some examples, but you are not limited to those). Specifically, your analysis should include:
a description of the negative externality, its social costs (you need only describe the costs, not provide dollar estimates), and main public policy (or policies if there is more than one) currently used to address the externality;
an analysis of the policy (or policies) in terms of its effectiveness (i.e. impact on behavior) and efficiency, which would include the actual resource costs of implementing the policy as well as other social costs it may generate;
and identification of an alternative approach, if there is one, that would be more effective or efficient.
Sample Solution