Just to be clear, this is not my proposal. I like the concept of markets determining the cost of various things. I would prefer that the government auction of

Just to be clear, this is not my proposal. I like the concept of markets determining the cost of various things. I would prefer that the government auction off pollution rights each year, that way the government holds thew monopoly and determines the cap, but we still have reasonable pricing. No matter how little you polluted you would still have an incentive to pollute less. What we have now is free pollution up to an arbitrary point where it becomes very expensive (because it is illegal). The obvious dominant strategy in the current system is to not care about pollution unless you are near the legal limit.