Even Hayek, so beloved of Thatcher and Reagan, sought to regulate and price externalities due to failures of the free market: “Nor can certain harmful effects

Even Hayek, so beloved of Thatcher and Reagan, sought to regulate and price externalities due to failures of the free market: “Nor can certain harmful effects of deforestation, or of some methods of farming, or of the smoke and noise of factories, be confined to the owner of the property in question or to those who are willing to submit to the damage for an agreed compensation. In such instances we must find some substitute for the regulation by the price mechanism.” (From Road to Serfdom)