You are working as a policy advisor for a state legislator. The legislator is determining whether to support a bill that would impose a tax on the use of coal-powered electricity. Proponents of the bill argue that power companies' use of coal to produce electricity results in air pollution, which is detrimental to the public's health.

1. Indicate whether this scenario is referring to a demand-side or a supply-side externality in the market for electricity, and whether it is positive or negative. Briefly explain.

2. Would enacting this tax increase, decrease, or have no effect on (private) consumer surplus in the market for electricity? Briefly explain.