PigouvianTax

Pigouvian tax is a tax imposed on activities that generate negative externalities, which are costs incurred by third parties not directly involved in the economic transaction. Named after economist Arthur Cecil Pigou, this tax aims to correct market inefficiencies caused by external costs such as pollution, resource depletion, and environmental degradation. By internalizing these externalities, Pigouvian taxes encourage firms and individuals to _________ _____ __________ _______ ________ _____ ___ ______ __________ _________ _____ _______.
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