1. The gas industry would like to use hydraulic fracturing to release natural gas in parts of New York state. Some people are concerned about potential contamination of the drinking water and air. Health studies are currently being done (http://www.nytimes.com/2012/09/21/nyregion/new-york-states-decision-on-hydrofracking-will-await-health-review.html?ref=waterpollution). Based on the Coase Theorem, why might it be desirable for the government to be involved in this issue? What are some of the advantages and disadvantages of the 5 usual alternative approaches to dealing with externalities in terms of this case? Which would you recommend