Pigouvian tax
(en)
a tax levied on any market activity that generates negative externalities
Highlighted phrases
pigouvian tax
pigovian tax
The neoclassical logic behind carbon pricing seeks to make companies factor the cost of pollution into their budgets. It's what's known as a Pigouvian Tax, and whether it actually succeeds in curbing emissions is secondary to whether it breeds efficiency.
notable
9 years ago