Pigouvian tax (Q728)
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A tax assessed against businesses and private individuals that engage in activities that create adverse side effects for society (including on the environment)
- Pigouvian taxes
- Pigovian tax
- Pigovian taxes
| Language | Label | Description | Also known as |
|---|---|---|---|
| English | Pigouvian tax |
A tax assessed against businesses and private individuals that engage in activities that create adverse side effects for society (including on the environment) |
|
Statements
edit: The concept of “internalizing” externalities by putting a price on them is known as Pigouvian taxes. The principle is to balance the harm done by the activity generating the externality with a price charged to the agent undertaking that activity