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 5Welfare 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.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.