Alternative approaches to handling incompatible uses

The Pigouvian approach   a. What is the optimal quantity of emissions? units   b. How high should the Pigouvian tax be set?  $/unit Legal options when transaction costs are prohibitively high: 1. An easement granted to the polluter... 1a. without liability for damages imposed on the pollutee:   (1) What quantity of emissions will result ? units   (2) What area(s) measure the total pollution damage?     (3) What area(s) measure the welfare loss?   1b. with liability for damages imposed on the pollutee, costlessly determined by the court:   (1) What quantity of emissions will result ? units   (2) What area(s) measure the resulting liability?   2. An injunction granted to the pollutee... 2a. without liability for damages imposed on the polluter:   (1) What quantity of emissions will result ? units   (2) What area(s) measure the total abatement cost?     (3) What area(s) measure the welfare loss?   2b. with liability for damages imposed on the polluter, costlessly determined by the court:   (1) What quantity of emissions will result ? units   (3) What area(s) measure the resulting liability?

Now consider the four incompatible use cases you were assigned to read. Complete the table below to indicate the remedy best illustrated in each case:

    (1) Fontainebleau Hotel Corp. v. Forty-Five Twenty-Five, Inc. 114 So.2d 357 (1959)
    (2) Estancias Dallas Corp. v. Schultz, 500 S.W. 2d 217 (1973)
    (3) Boomer v. Atlantic Cement Co. 26 N.Y.2d 219 (1970)
    (4) Spur Industries v. Del E. Webb Development (1972)