Under that scheme, who would have the property rights for the atmosphere? I rather like living in a place where atmospheric pollution (both domestic and commercial) is tightly controlled by regulations. We tried the alternative years ago and it was a disaster on many fronts.
Regulations are kind of a roundabout way to solve the problem. You want the polluter to be concerned about affecting its neighbors, not just to meet (or help set) some arbitrary government standard.
It should be possible to sue air polluters for putting
toxins on your property
Also, aggregation techniques could be used for both defendants (polluters) and plaintiffs (landowners and other people being poisoned.)