The installation of a scrubber in a smokestack reduces the emission of harmful chemicals from the smokestack. therefore, a government policy that internalized the externality would move the quantity of smokestack scrubbers installed from point

saving account is right

an informal structure in a bureaucracy would be something like so-called "office politics". where there's a formal structure set up for the organization, but then an informal subculture as well that has a way of organizing the bureaucracy further. this can be positive because it sets up an added degree of organization, albeit informal, within the bureaucracy.