Elena Gutierrez, Chapter 3, Question 4

In the beginning of chapter three Wheelan gives examples of both positive and negative externalities. Litter in public places was one of the examples that Wheelan gave for a negative externality. The over all public cost of litter is higher than the private cost of the person who litters. Wheelan wrote about an interesting solution that the Mayor of Chicago, Richard Daley, attempted to impose. Daley believed that  if he instilled a litter tax (1 cent for every $2 of take out food purchases) then there would ultimately be less litter. To me this was a great way for Wheelan to tie in what chapter two was about (incentives) with externalities, and how incentives can be used to correct externalities. It is clear to me that Daley thought he could use the incentive of high taxes to correct the litter problem in Chicago.