This article discusses the potential negative and positive production externalities of changing the height restrictions of buildings in Washington D.C. On one hand there's the government who thinks construction would produce a negative production externality in the form of production imposing upon the iconic monument height, and the security that comes with lower buildings in the event of an emergency. They value the city as a place centered around America's government and rich history. In opposition to the government are many consumers who see the positive production externality of producing more real estate in Washington D.C. People argue that great economic growth would come along with the relaxation of the height restrictions.
The negative production externailities would effect third parties such as people who appreciate the aesthetic beauty of the nations capital as well as current residents of the city. These people see more construction as a negative externality to the current unique environment of Washington D.C free of high rises and large areas of consumption. More construction diminishes the value of the monuments as well as contributes to congestion.Those in opposition to the government and citizens who value the aesthetic aspect of D.C. monuments see a positive production externality from revising the height restriction. Things like diverse architecture, more places for work and business, and more residence areas within the city would allow for the large demand for consumption in the city to be satisfied. The economic growth would cause a positive production externality extending beyond the center of the city. It will be interesting to see how this building restriction issue is resolved. With the government being a large player, internalizing the externality could be a difficult task. It is important to recognize that those involved are thinking like economists as they evaluate the externalities before allowing any changes to be made.
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