I work in the diesel engine industry and we are using a lot of resources trying to be ready for laws that are not yet written. It's a tough problem to solve. How much should the government force our innovation?
Ok - I co-taught a course on environmental regulation. The 30,000' synopsis is that most positive change within the world of environmental and ecosystem health has come from federal regulation and international treaties. These include almost all of the greatest 'wins' for our planet, from the Clean Water Act to the global outlaw of CFCs to the London Convention for vessel discharge. Unfortunately, as you mentioned, an enormous amount of time and money is exhausted trying to adapt to current regulations and chase future ones.
From a more philosophic viewpoint, the impact of emissions isn't limited to the manufacturer or even the end user. Tail pipe emission standards (e.g. through the Clean Air Act) are constitutional precisely because the 'harm' is experienced by people who didn't buy the car at all.
Just curious. Are there examples of "market forces" ever doing the environmental cleanup thing on their own. A few years back one used to hear the mantra of people practically worshiping the power of the market as a be all and end all solution to societal problems. I always thought the idea was kind of silly because often the market caused such problems in the first place.
I can see the "economy of scale" greatly lowering the price of electric cars. Then you could claim "market forces" are the solution, but the initial push needs to come from government forces.
That question really gets to how localized the pollution you are trying to control is and how widely disbursed the impacts are ("point source"), and how measurable the impacts are both in time and space.
Areas where "market forces" have been effective all seem to involve fairly localized impacts from discrete, point-source inputs that are easily measured. For example, if a particular manufacturing process results in a solid, toxic byproduct which is easily traceable, then "market forces" can help that industry find ways to reduce this toxic byproduct because 1) its measurable and 2) it comes at great cost (storage, removal) and 3) creates a large liability to that company.
Even then, "market forces" frequently requires some basic legislation. For example, we prohibit dumping coal ash into waterways, so it builds up in toxic containment pits (at significant cost) until "market forces" discovers it can be blended/sequestered into building concrete.
...but when it's a substance that's being produced by thousands of sources and makes us all sicker but just gradually over many decades (like the fumes from ICE vehicles)... yeah, it's almost impossible to rely on "market forces" to change anything. It's a problem called "the tragedy of the commons"