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SOLUTIONS: Some version of a pollution tax or cap-and-trade system is likely to be the best way to attain environmental benefits while minimizing the costs to American producers and consumers. It is also the form of environmental regulation best able to keep direct intervention by government at a minimum. Given the alternatives, friends of markets and limited government would be wise to move beyond the negative associations caused by the recent debate, and to give market-based environmental…

SOLUTIONS: Some version of a pollution tax or cap-and-trade system is likely to be the best way to attain environmental benefits while minimizing the costs to American producers and consumers. It is also the form of environmental regulation best able to keep direct intervention by government at a minimum. Given the alternatives, friends of markets and limited government would be wise to move beyond the negative associations caused by the recent debate, and to give market-based environmental…

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