Before considering pollution as an externality, let’s first consider another practice that deprives people of life, liberty, and property without due process of law. Sadly, I have to point out that comparing things doesn’t imply saying they are equal. Anyone who reads that I am equating these things is misinterpreting me, likely deliberately.
Practice 1: slavery. Slaves aren’t paid for their work. That lack of payment may make the cost of their labor an externality, but that externality is a minor point. The bigger issue is their loss of life and liberty. If you enslave someone, taking away their freedom with force and violence, but pay them competitive wages, you haven’t fixed the biggest issues.
Practice 2: pollution. People whose property loses value from pollution aren’t paid for that lowered value of property. That lack of payment may make those costs externalities, but those externalities are minor points. The bigger issue is their loss of life and liberty. If you hurt someone by polluting but compensate them for their material losses, you haven’t fixed the biggest issues.
The only way to solve slavery is to end the institution. Why would we think pollution would be different?
