2. The United States Environmental Protection Agency (U.S. EPA) has the au- thority to regulate the use of pesticides in areas that are critical habitat for endan- gered species. The U.S. EPA proposes a regulation that would ban the use of insec- ticide X in region Z. Cotton farmers in region Z use insecticide X to control insect damage. EPA recommends that cotton farmers switch from insecticide X to insecti- cide Y. Insecticide Y is less effective and more expensive than insecticide X, but it is not regulated. Synthetic fibers, whose production does not involve insecticides, are a substitute for cotton. How would you evaluate the social efficiency of this reg- ulation?