Incorrect. A baseless conjecture. If there was only free market, no government and public property was private and owned by everyone living in a radius - then

Incorrect. A baseless conjecture. If there was only free market, no government and public property was private and owned by everyone living in a radius - then people would just bring a lawsuit in an independent court to the polluters and either veto (pollution slowly killing you) or get financial compensation (think for things like a noisy airport next to your house). As it is the polluters just need to bribe the correct government official and it's all kosher.