Is an example of a negative externality. Governments intervene in the marketplace to make companies accountable for this kind of unintended consequence?

A negative externality occurs when a company's actions impose costs on third parties who are not involved in the transaction, such as pollution from a factory affecting nearby residents' health. This unintended consequence can lead to environmental degradation and increased healthcare costs for the community. To address these issues, governments often implement regulations, taxes, or fines to hold companies accountable and encourage them to adopt more sustainable practices. Such interventions aim to internalize the external costs, ensuring that companies bear the full social cost of their operations.