The philosophical problem with Cap and Trade is that it is an artificial creation of scarcity, and every such regulation is anathema to the libertarian mind (and I speak as a libertarian).
Um, I rather suspect you need to talk to Libertarians about intellectual property before you get all high and mighty about claiming they have a problem with 'artificial creation of scarcity'. You'll discover that most of them seem to have no problem with it.
However, more to the point, 'lack of pollution' is not artificial. People have always had the right to control people dumping stuff on their property. Or on the commons.
The only change is we've come to understand that the air and the climate are, in fact, property.
We need to figure out, as a society, how much damage we're willing to do to our commons (Just like we need to figure out how many cows we're going to let eat the grass of the village common, or whatever), and then fairly let people do that damage. (Which is, in modern society, done via the free market.)
This is, of course, complicated by the fact we're sharing these commons with the entire planet, and we don't want to restrict ourselves only to watch all the other villages eat the commons flat, but that is a fixable problem.
The practical problems are much greater - they begin with the fact that Cap and Trade is susceptible to "subsidy farming" by those who produce nothing, continue with the abuse of the system by arbitrageurs and other forms of rent seeker (Al Gore - I'm looking at you), and end with the fact that such provisions are not and are unlikely to ever be universal.
Uh, yes, which is why I proposed not handing the credits to companies, but instead handing them out to actual human beings, who could then do whatever they wanted with them. Or alternately the government could just let everyone bid on them, straight up highest bidder wins.
Looking back just shy of 2,000 years to when the Romans grew grapes in Yorkshire, I can see that the climate in the part of the world that I inhabit has been much warmer than today, with no dramatic ill effects on other parts of the world, so doubt that a couple of degrees rise from current temperatures would result in the disasters that the doomsayers would have us believe.
It's astonishing how your (lack of) scientific knowledge happens to align perfectly with your political position.
Here's a fun question for you, and unlike the other poster, it's not a hypothetical:
There are certain substances that are, in fact, toxic in large amounts, such as coal dust. This is not some 'possible' toxin, it's very well documented.
Coal plants, of course, wish to release these into the air, which is obviously cheaper than doing something about it, and even the expensive 'cleaning' system do not work 100%.
How do you propose we deal with that? Regulate an amount 'each plant' can give out? (What defines 'a plant'?) Regulate specific setups and cleaning equipment?