Analyse the statements below and affirm it as true or not.
1. When a group of neighbours ask a householder to tidy his front garden because they keep their own gardens tidy and attractive, they are attempting to use moral codes and social sanctions to internalize the externality associated with an untidy garden in a residential area.
2. For any given demand curve for pollution, a regulator can achieve the same level of pollution with either a Pigovian tax or by allocating tradable pollution permits.
3. If you values smoking in a restaurant at €10 and your friend values clean air while she eats at €15, according to the Coase theorem, you will not smoke in the restaurant only if your friend owns the right to clean air.