Pigouvian tax


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Pigouvian tax

(pɪˈɡuːvɪən)
n
(Government, Politics & Diplomacy) a tax levied to counter an economic negative externality, for example taxing producers of industrial pollution in order to encourage pollution control
[C20: named after Arthur Pigou (1877-1959), English economist]
Collins English Dictionary – Complete and Unabridged, 12th Edition 2014 © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003, 2006, 2007, 2009, 2011, 2014
References in periodicals archive ?
Accordingly, some right-leaning groups have suggested climate change policies featuring a Pigouvian tax on carbon emissions.
(4.) Government policies such as a Pigouvian tax also can create incentives for people to account for the external effects they impose on others, when transaction costs prohibit parties from bargaining with each other.
Stein's claims that Dodd-Frank works like a Pigouvian tax. We
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. (13)
Tax: a Pigouvian tax that seeks to correct the inefficient market
This Article addresses this problem by drawing on the Pigouvian tax literature.
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).
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.
(153) This is a general (desirable) feature of insurance, operating in effect like a Pigouvian tax in internalizing an otherwise-overlooked cost.
Other forms of regulation are inferior to the Pigouvian tax. Consider command-and-control regulation, in which a regulator forces a firm to take a particular action, such as installing a pollution-reducing scrubber.
They find that to correct the substantial accident externalities, a Pigouvian tax could raise over $220 billion per year nationally.
and Menegatti, M., 'Pigouvian Tax, Abatement Policies and Uncertainty on the Environment', 2011, Journal of Economics, vol.