Mexico City limits private car use to battle pollution

The article reports the initiatives taken by the Mexican Government to limit the number of cars to control the air pollution. The air pollution levels have reached to a state of environment emergency, forcing the government to intervene.


Topics include Market Failure, Marginal Social Cost, Marginal Private Cost, Negative Externalities and Sustainable Development. Explain using diagrams of Negative externalities of Consumption and Government’s action through prevention, regulation, penalties and legislation.


Evaluation will cover implications of penalties for environment damage on Consumers (car owners), Producers (car producers), affected parties, damage to environment, role of Government and extent of Government Intervention, other preventive methods to counter Negative Externalities in short term and long term.