Gruber presents good landscaping as an example of a positive consumption externality --- neighbors of the home derive utility from well-kept land despite not paying for it. But what if the home or yard is ugly?
I am from Oak Park, Illinois, home of architect Frank Lloyd Wright. Despite not living in a Wright home, I live in the FLW historic district, which has certain guidelines for proposed projects on historic property. Some examples include retaining historic window trimming, siding, and roofing.
One could imagine pretentious Oak Parkers demanding compensation if a neighbor deviates from the Wright style. But with these specific regulations, Oak Park turned to collective action for this negative consumption externality to keep homes' values high. And with 95% of proposals quickly approved, there's evidence that Oak Parkers take pride in their architecture and restoring its historic qualities.
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