Regulation by a centralized entity, to restrict people's freedom to engage in voluntary transactions, doesn't fix market failures. It makes them worse.
> How do you think externalities should be solved?
The only way to solve them is the way suggested by Coase's Theorem: reduce transaction costs to the point where voluntary trades will internalize the externalities. Of course this solution is not always possible, but that just means that in cases where it's not, no solution is possible. There is nothing that requires the universe to always make solutions possible for whatever issues we humans perceive. Certainly it does not follow from the fact that voluntary trades cannot always solve externalities, that government interference in markets does solve them. It doesn't; as I said, it makes them worse.
> How do you think externalities should be solved?
Since government interference with markets involves people making rules who are not parties to any of the transactions in the market and who suffer no penalties when their interference causes harm, government interference itself is an externality. So the claim that government interference can somehow solve externalities is obviously false on its face.
