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[quote]QUOTE: Originally posted by oltmannd [quote] The "free" market does not fix urban auto pollution since the "external" costs are not born by the individual auto owners. Just look at Mexico City for a current example. [/quote] On the contrary, the free market does address the externalities of urban pollution. It's called "moving". The more people that move away from overpopulated cities out to underpopulated areas, the more that urban pollution is reduced to the point of tolerance. If people choose to stay in polluted areas, then that is their choice, and by that action the "social cost" of the externality is eliminated. It is only an externality if there is no choice.
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