Question

How do governments correct for the unfairness of negative externalities? They create public goods. They pay the sufferers from tax money. They regulate firms and make such practices illegal. They educate citizens about such unfair practices.

Answer 1

they can impose fines for the damage or ensure that businesses do not cause such damage in the first place

Answer 2

In general, governments correct for the unfairness of negative externalities in that they "they regulate firms and make such practices illegal," although this is not always done properly.