Suppose you serve on an environmental policy planning board for the federal government. Your task is to

propose a policy initiative aimed at reducing urban air pollution, using the assignment of property rights

according to the Coase Theorem. Assume that the major polluters to be targeted are commuter bus

companies and that the major parties affected are the collection of city dwellers - residents and workers.

Describe your proposal in detail and include the following:

a) Whether the rights are to be assigned to city dwellers or to bus companies (and why)

b) How these rights are to be defined

c) How the rights are to be distributed to the parties

d) Whether the rights are to be auctioned or sold, and if sold, at what price