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The article talks about the state of Tehran's atmosphere which has turned into a thick brown haze of smog. The inadequacy of public transportation in the city along with government policy promoting automobile usage for its booming car industry has created an atmosphere which has led to the bastardization of its air and the consequent deaths of its citizens. The article is related with this week's topic in the sense that in case of market failure (overproduction of cars) an adequate government response is required to stabilize the situation - which was not the case for Ahmadinejad's Tehran.

In India, new cars are being registered at a rate of nearly two million per year. The Indian auto industry has become the world's seventh largest, now having overtaken every European country except for Germany. This exponential rate of production comes at an opportunity cost however. A mixed externality takes place. The stimulation in the auto industry increases the demand, and therefore the possession of cars in the country, which will hence increase the amount of green house gases released by general motor transport, aggravating atmospheric pollution.