In other words, the optimal trade and environmental policies are the reciprocal of the elasticity of the foreign country's offer curve, and the Pigouvian tax
This Article addresses this problem by drawing on the Pigouvian tax
A Pigouvian subsidy on positive externalities, which is the complement of a Pigouvian tax
on negative externalities, (66) compensates producers for externalities that confer a benefit on society that is not reflected in the price.
It's what economists call a Pigouvian tax
(a tax on some economic activity that we want to reduce, like pollution or secondhand smoke, because of negative externalities).
153) This is a general (desirable) feature of insurance, operating in effect like a Pigouvian tax
in internalizing an otherwise-overlooked cost.
1) A Pigouvian tax
is a tax equal to the harm that the firm imposes on third parties.
This is a general (desirable) feature of insurance, operating in effect like a Pigouvian tax
in internalizing an otherwise overlooked cost, helping to make an informed cost-benefit calculation in choosing locations.
They find that to correct the substantial accident externalities, a Pigouvian tax
could raise over $220 billion per year nationally.
This is because the incentives to develop second-generation biofuels are inefficiency low under the LCFS regime, because the implicit price on carbon is lower than that corresponding to the optimal Pigouvian tax
This would be the clearest example of Pigouvian tax
because it builds a relatively tight feedback loop.
Some countries have, however, implemented Pigouvian tax
regimes to curb the emissions of climate gases.
The Pigouvian tax
solution to a pollution externality places responsibility on the firm producing the pollution.