Sentence:  "(1) Each agency shall identify in writing the specific market failure (such as <WSD>externalities</WSD>, market power, lack of information) or other specific problem that it intends to address (including, where applicable, the failures of public institutions) that warrant new agency action, as well as assess the significance of that problem, to enable assessment of whether any new regulation is warranted." 
Meaning of the word marked with <WSD> tags:  An impact, positive or negative, on any party not involved in a given economic transaction or act.