Butterfly emerging from a factories chimney: Pigou's vision of correcting negative externalities.

Understanding Pigovian Taxes: Correcting Negative Externalities in Finance and Investment

Introduction to Pigovian Taxes: Corrections for Negative Externalities The term “Pigovian tax” is derived from the name of its originator, British economist Arthur Cecil Pigou (1877-1959). Pigou was a pioneer in recognizing negative externalities as an issue that required government intervention to mitigate their impact on society. A negative externality

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