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Externalities & Regulation

by Jadrian

Skyler gets Bogdan to sell his car wash under an elaborate ruse where it appears he is contaminating the local groundwater. While the company isn't actually polluting the groundwater, companies that contaminate groundwater are imposing external costs on society and are not accurately accounting for that cost in their pricing. While the optimal amount of groundwater pollution probably isn't zero, with negative externalities, firms are overproducing. Governments often take a command-and-control approach to some forms of regulation and insist that companies pay steep fines for violations.

Breaking Bad: Water Contamination

Bogdan appears to be contaminating the local groundwater

from Breaking Bad (2011)
Creator: Vince Gilligan
Distributor: AMC
Posted by Jadrian
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