The cornerstone of this book’s proposal is a system of environmental taxes, which will serve as price signals for polluting activities. This part of the proposal is so central because prices are the cornerstone of a healthy market economy; without prices, there is no market. With inaccurate prices, markets will function, but they will misallocate resources. That describes how the entire world, including even Sweden, functions: the value of the global environment is almost never accurately priced into day-to-day activities. An environmental tax, if set at the correct level, would reflect the cost of some harm inflicted upon the environment, and therefore act as an appropriate price for that harm. An environmental tax would typically be levied upon some small but measurable unit of pollution: a ton of carbon dioxide, a ton of sulfur dioxide, or a pound of nitrogen oxides.