After watching A Civil Action, and studying the economic and environmental issues involved I feel that the way they solved the problem was the best way that they possibly could have. If they would have used the Pygovian Taxes it would not have solved the problem and people would have still died in the future. Furthermore just taxing them for the ability to pollute does not really punish the company for what they did in the past, which they certainly did need to be.
In this case after many kids died and people got sick from drinking polluted water, which the company polluted knowing the bad effects that it could have, the company not only polluted but put other people at risk. This crosses the personal rights protected by the United States. Not only did they put other people at risk but they knew that they were doing this which makes it even worse ethically and morally. For the government to allow the pollution to continue at a price would not only tell the company that it was ok but also encourage them to continue with their un-environmentally and health conscience ways of polluting.
Trying to have the company and the people solve their problem with a Coase solution, working something out between the two sides where both parties are happy really wouldn't work that well either. Because the firm polluting knows that they were wrong they are not likely to admit it, and because there is no proof coming from the citizens the company has no incentive to work out a solution. Without the possibility of something negative happening to them why would the company want to change their ways. For them to change their ways they must know that they are going to suffer an economic blow and that it will make sense for them to do it. Because the citizens have no power over the company they really can not expect that they company will do anything for them because it would not be logical economically.