I don't understand this thing of the externalities. The free market makes the roads if that's what you're talking about.
Hard to administer: I mean, human beings are not designed to administer at big scales. We all have a Dunbar number limit of how many people we can know and trust (around 160). That would be the maximum number of people in the structures I'm talking about. Big states are just a product of the big circle jerk of mediocrity and conformism that is society nowadays
Externalities to the public of using roads, generating trash. Have to be repaired, has to be picked up. So you have a consumption tax for the things you use.
This can be treated with entrepreneurship and human action. It's not pretty intuitive, but if I am really annoyed of a place being polluted or a road being in bad conditions, I can hire people that can do the work of cleaning and repairing. Some of them are better at doing those works than others, so they charge me less money. In doing these works, they're slowly but surely contributing technologies and ideas to determine what appeases that "unease in my mind". Maybe they don't know, but they're competing exponentially and even beyond to just satisfy my needs, the needs of the person that has the money.
TLDR the free market is like hiring Hulk to do the job.
The argument above also applies to my personal defense and security
An interesting article about all of what I said is this (interesting but a little off topic. Maybe you will find it familiar because it talks frequently about sports):
I do think the market would step in to repair roads if there were no government.
