KnowraPigouvian taxLinked fromLinked fromThe 19 pages that link to Pigouvian tax, each with the reason it gives.All 19Broader topic 6Related 7Narrower topic 1Compared with 5ExternalityRelated: It can align private incentives with the social cost of a harmful spillover.Market failureRelated: It can make decision-makers account for costs their activity imposes on others.Welfare economicsBroader topic: It can align private incentives with social costs when an externality is measurable.Environmental economicsBroader topic: It can make polluters face the social cost of emissions.Carbon taxNarrower topic: A carbon tax applies this principle to climate damages from greenhouse-gas emissions.Land value taxRelated: Both designs alter incentives, but land value taxation targets scarcity rents rather than external costs.Coase theoremCompared with: Coase’s analysis challenged the idea that external costs always require corrective taxation.Command-and-control regulationCompared with: Unlike a fixed legal limit, it changes the cost of pollution while allowing firms to choose their response.Nudge theoryCompared with: Unlike a nudge, it changes prices through a financial incentive.Ronald CoaseCompared with: Coase’s analysis complicates the case for taxes as the default response to external costs.Polluter pays principleRelated: It gives the polluter pays principle a price-based form by charging for pollution costs.Allocative efficiencyRelated: Pricing a negative externality can move production toward the socially efficient mix.Economic efficiencyRelated: It can improve efficiency when private choices impose costs omitted from market prices.Environmental policyRelated: Environmental taxes can make polluters bear costs otherwise imposed on society.Arthur Cecil PigouBroader topic: Pigou proposed corrective taxation as a way to address harmful externalities.Market efficiencyBroader topic: It can align private incentives with social costs and improve allocative efficiency.Invisible handBroader topic: It can align incentives with social costs when markets leave harms unpriced.Public economicsBroader topic: It can internalize a negative externality without prescribing a specific production method.William VickreyCompared with: Vickrey’s congestion charges addressed external costs through time- and place-sensitive road pricing.
KnowraPigouvian taxLinked fromLinked fromThe 19 pages that link to Pigouvian tax, each with the reason it gives.All 19Broader topic 6Related 7Narrower topic 1Compared with 5ExternalityRelated: It can align private incentives with the social cost of a harmful spillover.Market failureRelated: It can make decision-makers account for costs their activity imposes on others.Welfare economicsBroader topic: It can align private incentives with social costs when an externality is measurable.Environmental economicsBroader topic: It can make polluters face the social cost of emissions.Carbon taxNarrower topic: A carbon tax applies this principle to climate damages from greenhouse-gas emissions.Land value taxRelated: Both designs alter incentives, but land value taxation targets scarcity rents rather than external costs.Coase theoremCompared with: Coase’s analysis challenged the idea that external costs always require corrective taxation.Command-and-control regulationCompared with: Unlike a fixed legal limit, it changes the cost of pollution while allowing firms to choose their response.Nudge theoryCompared with: Unlike a nudge, it changes prices through a financial incentive.Ronald CoaseCompared with: Coase’s analysis complicates the case for taxes as the default response to external costs.Polluter pays principleRelated: It gives the polluter pays principle a price-based form by charging for pollution costs.Allocative efficiencyRelated: Pricing a negative externality can move production toward the socially efficient mix.Economic efficiencyRelated: It can improve efficiency when private choices impose costs omitted from market prices.Environmental policyRelated: Environmental taxes can make polluters bear costs otherwise imposed on society.Arthur Cecil PigouBroader topic: Pigou proposed corrective taxation as a way to address harmful externalities.Market efficiencyBroader topic: It can align private incentives with social costs and improve allocative efficiency.Invisible handBroader topic: It can align incentives with social costs when markets leave harms unpriced.Public economicsBroader topic: It can internalize a negative externality without prescribing a specific production method.William VickreyCompared with: Vickrey’s congestion charges addressed external costs through time- and place-sensitive road pricing.