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.Land value taxRelated: Both designs alter incentives, but land value taxation targets scarcity rents rather than 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.