Pigouvian taxes
E82233
Pigouvian taxes are corrective taxes designed to address negative externalities by aligning private costs with social costs, thereby improving overall economic efficiency.
Observed surface forms (1)
| Surface form | Occurrences |
|---|---|
| Pigouvian tax | 3 |
Statements (49)
| Predicate | Object |
|---|---|
| instanceOf |
corrective tax
ⓘ
economic policy instrument ⓘ market-based environmental policy ⓘ |
| aimsTo |
align private costs with social costs
ⓘ
correct market failures ⓘ improve economic efficiency ⓘ internalize negative externalities ⓘ |
| appliesTo |
activities generating negative externalities
ⓘ
alcohol consumption externalities ⓘ carbon emissions ⓘ congestion ⓘ pollution ⓘ tobacco consumption externalities ⓘ |
| canBeUsedFor |
environmental policy
ⓘ
public health policy ⓘ transport policy ⓘ |
| contrastedWith |
command-and-control regulation
ⓘ
quantity-based regulation ⓘ |
| criticizedFor |
distributional impacts
ⓘ
information requirements ⓘ political implementation challenges ⓘ |
| describedInWork | The Economics of Welfare ⓘ |
| domain |
environmental economics
ⓘ
public economics ⓘ |
| effectOnMarket |
can increase government revenue
ⓘ
raises private marginal cost curve ⓘ reduces equilibrium quantity of harmful activity ⓘ |
| hasPurpose |
achieve socially optimal output level
ⓘ
discourage overproduction of goods with external costs ⓘ reduce socially harmful activities ⓘ reflect social marginal cost in market prices ⓘ |
| introducedBy | Arthur Cecil Pigou ⓘ |
| introducedInCentury | 20th century ⓘ |
| isCalculatedAs | marginal external cost at socially optimal quantity ⓘ |
| mayInclude | earmarking revenues for compensation or public goods ⓘ |
| namedAfter | Arthur Cecil Pigou ⓘ |
| policyGoal | achieve first-best allocation under ideal information ⓘ |
| policyType | price-based instrument ⓘ |
| relatedConcept |
Coase theorem
ⓘ
Pigouvian subsidy ⓘ carbon tax ⓘ congestion charge ⓘ sin tax ⓘ social marginal cost pricing ⓘ |
| requires |
estimation of social cost
ⓘ
measurement of marginal external damage ⓘ |
| theoreticalBasis |
externality theory
ⓘ
welfare economics ⓘ |
| usedBy | governments ⓘ |
Referenced by (4)
Full triples — surface form annotated when it differs from this entity's canonical label.
this entity surface form:
Pigouvian tax
this entity surface form:
Pigouvian tax
this entity surface form:
Pigouvian tax