A poorly-selected level of pollution per firm can lead to a sub-optimal net effect on the environment. We define the optimal individual pollution level required for participants to maximize overall environmental effectiveness. We stress several implications for economic policy

Based on a case of contracting for environmental property rights, we explore several implications of applying Coase's insights. The case study adds empirical content to transaction costs concepts by analyzing the design and implementation of a contractual arrangement between a pollutee - a...