Y5

Question Three Consider the problem of water pollution. Environmental economics has offered a variety of ways to address problems like this including (a) Coasian bargaining, (b) Pigouvian tax, and (c) cap and trade. For each of these three approaches (1) Explain what is meant by the approach, (ii) Explain how it might be applied to deal with water pollution problems, and (iii) A brief explanation of the conditions in which that approach might be the best way to address a water pollution