Leslie tries to convince Jessica Newport to donate the Newport land to the national Park Service by reminding her that the Newport name has not always been associated with positive things. For instance when their hot fudge pipe exploded and the hot fudge flowed into the lake making the fish taste delicious. Negative externality or positive externality, you be the judge.
Leslie is a workaholic, so when the office starts to get sick she gets a bit nervous. When Andy starts showing symptoms of the flu, she realizes he may be contagious. Jerry has already been quarantined because of his symptoms.
Leslie shares her opinion that a vendor at the farmers’ market has a crude display, and cites this as a reason to kick them out. Some citizens argue that government should not play an active role in dictating norms in society, but Leslie feels that’s the part of the government’s responsibility. This could be argued from a public choice perspective or as the role of government in correcting externalities.
Leslie is accused of stripping people’s personal freedoms, but there are significant benefits to the community. According to Leslie, obesity is down, test scores are up, and raccoon attacks have decreased, but some citizens aren’t happy with the changes. When determining the appropriate level of government regulation, the costs and benefits of each action need to be considered, which is easier said than done.
Tom incentives the department to come to his club and try his newest drink by threatening to place them on his “done-zo” list. The Parks Department decides to go to the Snake Hole Lounge to try Tom’s new drink, but instead they all have a bit too much and go through the next day feeling terrible. One of the other issues shown in this video is diminishing marginal utility. As the night goes on, each member of the group gets a bit happier, but they eventually peak and see negative returns the next morning.
See more: decreasing utility, diminishing returns, externalities, health economics, negative externalities, negative utility, private benefits, private costs, social benefits, social costs, unintended consequences, utility maximization
April accidentally schedules all of Ron’s meetings for March 31st because she doesn’t think it’s a real day. Instead, Ron has to deal with a variety of concerned citizens, many of whom are causing externalities throughout the city.
Tom wants to look good, and smell good, for Jessica Newport so he decides to sit for a few minutes in his “cologne cloud.” The smell is so overpowering though that Leslie needs to exit the car immediately. While Tom feels be benefits are worth the smell, Leslie isn’t a fan of the external effects.
Leslie’s first act as a city councilwoman is to implement a soda tax because she believes that it will make Pawnee healthier. The new larger sodas are causing obesity in town and Leslie aims to regulate the market through taxes. Depending on the size of the local elasticity, there may not be much of a change in consumption, but it could mean additional revenue for the city.
The Parks Department is hosting a BBQ in the local park. Ron decides to bring a pig to the park because he wants people to see their food before consuming it. He is not allowed to because it is against the law and violates health codes despite his beliefs that he should be allowed to as the Parks Department director.
The Parks Department of Pawnee invites delegates from their sister city in Baraguá, Venezuela to attend a local townhall meeting. This particular townhall meeting includes complaints about various externalities associated with parks including frisbees and dog feces. The Baraguá delegate describes the command and control approach used by his country when citizens impose externalities on others.