R. Scott Kemp, teaching MIT's 22.04 Social Problems of Nuclear Energy, lays out the economic theory of externalities and applies it to electricity markets. He builds the standard argument for regulation as a corrective to costs that markets do not price, such as pollution or accident risk, then turns to how the Nuclear Regulatory Commission actually tries to enforce nuclear safety. The lecture examines where that regulatory structure succeeds and where it breaks down, including a discussion of regulatory capture, the phenomenon where an agency meant to police an industry ends up shaped by the interests it oversees. Kemp connects abstract market failure concepts directly to concrete NRC practice, giving the seventy-four minute session both a theoretical backbone and a case study in how nuclear power is governed in practice.