Arrange the following steps in the correct order for how government intervention can improve market efficiency in the presence of a negative externality.

When there is a negative externality, like pollution from a factory, the government can step in to help make the market work better. First, the government can identify the problem and understand how the factory's pollution affects people and the environment. Next, they might impose regulations or taxes on the factory to encourage it to reduce its pollution, making it more expensive to pollute. This can lead the factory to find cleaner methods of production or invest in technology to lower its emissions. For example, if the government taxes each ton of pollution, the factory may choose to reduce its output or adopt cleaner practices to save money, ultimately benefiting the community and improving overall market efficiency.