{"id":6552,"date":"2018-02-05T15:37:44","date_gmt":"2018-02-05T15:37:44","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/chapter\/outcome-government-involvement-and-externalities\/"},"modified":"2024-04-25T23:03:00","modified_gmt":"2024-04-25T23:03:00","slug":"introduction-to-government-involvement-with-externalities","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/chapter\/introduction-to-government-involvement-with-externalities\/","title":{"raw":"Introduction to Government Involvement with Externalities","rendered":"Introduction to Government Involvement with Externalities"},"content":{"raw":"<h2>What you'll learn to do: analyze the efficacy of government policies to lessen positive and negative externalities<\/h2>\r\n[caption id=\"attachment_8098\" align=\"aligncenter\" width=\"615\"]<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2042\/2018\/02\/03191030\/hand-3298095_1920.png\"><img class=\"wp-image-8098 \" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2042\/2018\/02\/03191030\/hand-3298095_1920-1024x683.png\" alt=\"Image of a hand holding an incandescent lightbulb. The filaments in the lightbulb have been altered to look like a green dollar sign.\" width=\"615\" height=\"410\" \/><\/a> <strong>Figure 1<\/strong>. In the late 1960s and early 1970s the United States started passing comprehensive environmental laws that can be described as Command-and-Control Regulation. The question that persists is: \"How effective has this regulation been?[\/caption]\r\n\r\nWith an understanding of what exactly positive and negative externalities are, we can now examine how the government uses regulation and economic incentives to help markets produce more efficient outcomes.","rendered":"<h2>What you&#8217;ll learn to do: analyze the efficacy of government policies to lessen positive and negative externalities<\/h2>\n<div id=\"attachment_8098\" style=\"width: 625px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2042\/2018\/02\/03191030\/hand-3298095_1920.png\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-8098\" class=\"wp-image-8098\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2042\/2018\/02\/03191030\/hand-3298095_1920-1024x683.png\" alt=\"Image of a hand holding an incandescent lightbulb. The filaments in the lightbulb have been altered to look like a green dollar sign.\" width=\"615\" height=\"410\" \/><\/a><\/p>\n<p id=\"caption-attachment-8098\" class=\"wp-caption-text\"><strong>Figure 1<\/strong>. In the late 1960s and early 1970s the United States started passing comprehensive environmental laws that can be described as Command-and-Control Regulation. The question that persists is: &#8220;How effective has this regulation been?<\/p>\n<\/div>\n<p>With an understanding of what exactly positive and negative externalities are, we can now examine how the government uses regulation and economic incentives to help markets produce more efficient outcomes.<\/p>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-6552\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Introduction to Government Involvement with Externalities. <strong>Authored by<\/strong>: Steven Greenlaw and Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Lightbulb and dollar sign. <strong>Authored by<\/strong>: Geralt. <strong>Provided by<\/strong>: Pixabay. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/pixabay.com\/en\/hand-keep-light-bulb-dollar-3298095\/\">https:\/\/pixabay.com\/en\/hand-keep-light-bulb-dollar-3298095\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/about\/cc0\">CC0: No Rights Reserved<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":29,"menu_order":9,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Introduction to Government Involvement with Externalities\",\"author\":\"Steven Greenlaw and Lumen Learning\",\"organization\":\"\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Lightbulb and dollar sign\",\"author\":\"Geralt\",\"organization\":\"Pixabay\",\"url\":\"https:\/\/pixabay.com\/en\/hand-keep-light-bulb-dollar-3298095\/\",\"project\":\"\",\"license\":\"cc0\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"68bfea8b-40c4-4911-940f-c5f09ec7407b","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-6552","chapter","type-chapter","status-publish","hentry"],"part":6533,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapters\/6552","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/wp\/v2\/users\/29"}],"version-history":[{"count":9,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapters\/6552\/revisions"}],"predecessor-version":[{"id":8414,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapters\/6552\/revisions\/8414"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/parts\/6533"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapters\/6552\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/wp\/v2\/media?parent=6552"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapter-type?post=6552"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/wp\/v2\/contributor?post=6552"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/wp\/v2\/license?post=6552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}