I remember my libertarian studies already had answers for many social questions like this.

For air pollution, the citizens could pool their resources together to either pay the company to shut down its factory or put in pollution controls. No government needed: just a little business contract----and the citizens affected by the air pollution having enough cash to convince the company to make the change.

I think a libertarian society could work. But we would need a better collective mindset of generosity, compassion, and co-operation. In 500 years, we might be there. In the meantime, we need government as big player in our society. Hopefully a wise government.