Pigouvian Tax

A Pigouvian tax, also known as a corrective tax or externality tax, is a form of government intervention in market economics designed to address negative externalities – the unintended costs or side effects of economic activities that impact third parties who are not involved in the transaction. Named after the British economist Arthur Pigou, this tax aims to internalize the external costs by ______ ______ _________ _________ ___ ______ _____ _______ ___ ________ _______ ________.
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