In the sense that pure markets are the most effective known way to efficiently allocate resources. In reality they can fall short in any number of ways. Cap-a

In the sense that pure markets are the most effective known way to efficiently allocate resources. In reality they can fall short in any number of ways. Cap-and-trade for sulfur dioxide is the poster child. It has worked well in reducing overall levels quickly and cost effectively: http://www.grinningplanet.com/2004/02-12/cap-and-trade-pollution-credits-eco.htm http://www.grinningplanet.com/2004/02-12/cap-and-trade-pollu... . But I don't know of any other examples of cap-and-trade so it's not clear it's an all-purpose strategy.