Two common drawbacks of Pigouvian subsidy mentioned in the literature are related to monetisation and measurement of social cost (Baumol) and reciprocity of social cost (Coase). What alternatives to Pigouvian taxes are proposed in the literature? Have any of such alternative measures been implemented in practice? Solution The most obvious answer is Coasian bargaining. What Coase showed in his famous \"The Problem of Social Cost\" is that if there are no transaction costs and if utility is transferable then it suffices to allocate property rights.