CINXE.COM

<!DOCTYPE html> <html class="client-nojs vector-feature-language-in-header-enabled vector-feature-language-in-main-page-header-disabled vector-feature-page-tools-pinned-disabled vector-feature-toc-pinned-clientpref-1 vector-feature-main-menu-pinned-disabled vector-feature-limited-width-clientpref-1 vector-feature-limited-width-content-enabled vector-feature-custom-font-size-clientpref-1 vector-feature-appearance-pinned-clientpref-1 vector-feature-night-mode-enabled skin-theme-clientpref-day vector-sticky-header-enabled vector-toc-available" lang="en" dir="ltr"> <head> <meta charset="UTF-8"> <title>Pigouvian tax - Wikipedia</title> <script>(function(){var className="client-js vector-feature-language-in-header-enabled vector-feature-language-in-main-page-header-disabled vector-feature-page-tools-pinned-disabled vector-feature-toc-pinned-clientpref-1 vector-feature-main-menu-pinned-disabled vector-feature-limited-width-clientpref-1 vector-feature-limited-width-content-enabled vector-feature-custom-font-size-clientpref-1 vector-feature-appearance-pinned-clientpref-1 vector-feature-night-mode-enabled skin-theme-clientpref-day vector-sticky-header-enabled vector-toc-available";var cookie=document.cookie.match(/(?:^|; )enwikimwclientpreferences=([^;]+)/);if(cookie){cookie[1].split('%2C').forEach(function(pref){className=className.replace(new RegExp('(^| )'+pref.replace(/-clientpref-\w+$|[^\w-]+/g,'')+'-clientpref-\\w+( |$)'),'$1'+pref+'$2');});}document.documentElement.className=className;}());RLCONF={"wgBreakFrames":false,"wgSeparatorTransformTable":["",""],"wgDigitTransformTable":["",""],"wgDefaultDateFormat":"dmy", "wgMonthNames":["","January","February","March","April","May","June","July","August","September","October","November","December"],"wgRequestId":"3ab2a09e-ccc1-48db-ae1d-73cab54df9dc","wgCanonicalNamespace":"","wgCanonicalSpecialPageName":false,"wgNamespaceNumber":0,"wgPageName":"Pigouvian_tax","wgTitle":"Pigouvian tax","wgCurRevisionId":1278498059,"wgRevisionId":1278498059,"wgArticleId":372081,"wgIsArticle":true,"wgIsRedirect":false,"wgAction":"view","wgUserName":null,"wgUserGroups":["*"],"wgCategories":["Articles with short description","Short description matches Wikidata","Wikipedia articles with style issues from April 2016","All articles with style issues","All articles with failed verification","Articles with failed verification from June 2013","All articles with unsourced statements","Articles with unsourced statements from May 2012","Articles needing additional references from February 2020","All articles needing additional references","Articles with excerpts", "Articles with unsourced statements from November 2012","Market failure","Environmental tax","Environmental economics","Ecological economics","1920 in economic history"],"wgPageViewLanguage":"en","wgPageContentLanguage":"en","wgPageContentModel":"wikitext","wgRelevantPageName":"Pigouvian_tax","wgRelevantArticleId":372081,"wgIsProbablyEditable":true,"wgRelevantPageIsProbablyEditable":true,"wgRestrictionEdit":[],"wgRestrictionMove":[],"wgNoticeProject":"wikipedia","wgCiteReferencePreviewsActive":false,"wgFlaggedRevsParams":{"tags":{"status":{"levels":1}}},"wgMediaViewerOnClick":true,"wgMediaViewerEnabledByDefault":true,"wgPopupsFlags":0,"wgVisualEditor":{"pageLanguageCode":"en","pageLanguageDir":"ltr","pageVariantFallbacks":"en"},"wgMFDisplayWikibaseDescriptions":{"search":true,"watchlist":true,"tagline":false,"nearby":true},"wgWMESchemaEditAttemptStepOversample":false,"wgWMEPageLength":50000,"wgEditSubmitButtonLabelPublish":true,"wgULSPosition":"interlanguage", "wgULSisCompactLinksEnabled":false,"wgVector2022LanguageInHeader":true,"wgULSisLanguageSelectorEmpty":false,"wgWikibaseItemId":"Q931921","wgCheckUserClientHintsHeadersJsApi":["brands","architecture","bitness","fullVersionList","mobile","model","platform","platformVersion"],"GEHomepageSuggestedEditsEnableTopics":true,"wgGETopicsMatchModeEnabled":false,"wgGEStructuredTaskRejectionReasonTextInputEnabled":false,"wgGELevelingUpEnabledForUser":false};RLSTATE={"ext.globalCssJs.user.styles":"ready","site.styles":"ready","user.styles":"ready","ext.globalCssJs.user":"ready","user":"ready","user.options":"loading","ext.cite.styles":"ready","skins.vector.search.codex.styles":"ready","skins.vector.styles":"ready","skins.vector.icons":"ready","jquery.makeCollapsible.styles":"ready","ext.wikimediamessages.styles":"ready","ext.visualEditor.desktopArticleTarget.noscript":"ready","ext.uls.interlanguage":"ready","wikibase.client.init":"ready"};RLPAGEMODULES=["ext.cite.ux-enhancements", "mediawiki.page.media","ext.scribunto.logs","site","mediawiki.page.ready","jquery.makeCollapsible","mediawiki.toc","skins.vector.js","ext.centralNotice.geoIP","ext.centralNotice.startUp","ext.gadget.ReferenceTooltips","ext.gadget.switcher","ext.urlShortener.toolbar","ext.centralauth.centralautologin","mmv.bootstrap","ext.popups","ext.visualEditor.desktopArticleTarget.init","ext.visualEditor.targetLoader","ext.echo.centralauth","ext.eventLogging","ext.wikimediaEvents","ext.navigationTiming","ext.uls.interface","ext.cx.eventlogging.campaigns","ext.cx.uls.quick.actions","wikibase.client.vector-2022","ext.checkUser.clientHints","ext.growthExperiments.SuggestedEditSession"];</script> <script>(RLQ=window.RLQ||[]).push(function(){mw.loader.impl(function(){return["user.options@12s5i",function($,jQuery,require,module){mw.user.tokens.set({"patrolToken":"+\\","watchToken":"+\\","csrfToken":"+\\"}); }];});});</script> <link rel="stylesheet" href="/w/load.php?lang=en&modules=ext.cite.styles%7Cext.uls.interlanguage%7Cext.visualEditor.desktopArticleTarget.noscript%7Cext.wikimediamessages.styles%7Cjquery.makeCollapsible.styles%7Cskins.vector.icons%2Cstyles%7Cskins.vector.search.codex.styles%7Cwikibase.client.init&only=styles&skin=vector-2022"> <script async="" src="/w/load.php?lang=en&modules=startup&only=scripts&raw=1&skin=vector-2022"></script> <meta name="ResourceLoaderDynamicStyles" content=""> <link rel="stylesheet" href="/w/load.php?lang=en&modules=site.styles&only=styles&skin=vector-2022"> <meta name="generator" content="MediaWiki 1.44.0-wmf.18"> <meta name="referrer" content="origin"> <meta name="referrer" content="origin-when-cross-origin"> <meta name="robots" content="max-image-preview:standard"> <meta name="format-detection" content="telephone=no"> <meta name="viewport" content="width=1120"> <meta property="og:title" content="Pigouvian tax - Wikipedia"> <meta property="og:type" content="website"> <link rel="preconnect" href="//upload.wikimedia.org"> <link rel="alternate" media="only screen and (max-width: 640px)" href="//en.m.wikipedia.org/wiki/Pigouvian_tax"> <link rel="alternate" type="application/x-wiki" title="Edit this page" href="/w/index.php?title=Pigouvian_tax&action=edit"> <link rel="apple-touch-icon" href="/static/apple-touch/wikipedia.png"> <link rel="icon" href="/static/favicon/wikipedia.ico"> <link rel="search" type="application/opensearchdescription+xml" href="/w/rest.php/v1/search" title="Wikipedia (en)"> <link rel="EditURI" type="application/rsd+xml" href="//en.wikipedia.org/w/api.php?action=rsd"> <link rel="canonical" href="https://en.wikipedia.org/wiki/Pigouvian_tax"> <link rel="license" href="https://creativecommons.org/licenses/by-sa/4.0/deed.en"> <link rel="alternate" type="application/atom+xml" title="Wikipedia Atom feed" href="/w/index.php?title=Special:RecentChanges&feed=atom"> <link rel="dns-prefetch" href="//meta.wikimedia.org" /> <link rel="dns-prefetch" href="login.wikimedia.org"> </head> <body class="skin--responsive skin-vector skin-vector-search-vue mediawiki ltr sitedir-ltr mw-hide-empty-elt ns-0 ns-subject mw-editable page-Pigouvian_tax rootpage-Pigouvian_tax skin-vector-2022 action-view"><a class="mw-jump-link" href="#bodyContent">Jump to content</a> <div class="vector-header-container"> <header class="vector-header mw-header"> <div class="vector-header-start"> <nav class="vector-main-menu-landmark" aria-label="Site"> <div id="vector-main-menu-dropdown" class="vector-dropdown vector-main-menu-dropdown vector-button-flush-left vector-button-flush-right" title="Main menu" > <input type="checkbox" id="vector-main-menu-dropdown-checkbox" role="button" aria-haspopup="true" data-event-name="ui.dropdown-vector-main-menu-dropdown" class="vector-dropdown-checkbox " aria-label="Main menu" > <label id="vector-main-menu-dropdown-label" for="vector-main-menu-dropdown-checkbox" class="vector-dropdown-label cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only " aria-hidden="true" ><span class="vector-icon mw-ui-icon-menu mw-ui-icon-wikimedia-menu"></span> <span class="vector-dropdown-label-text">Main menu</span> </label> <div class="vector-dropdown-content"> <div id="vector-main-menu-unpinned-container" class="vector-unpinned-container"> <div id="vector-main-menu" class="vector-main-menu vector-pinnable-element"> <div class="vector-pinnable-header vector-main-menu-pinnable-header vector-pinnable-header-unpinned" data-feature-name="main-menu-pinned" data-pinnable-element-id="vector-main-menu" data-pinned-container-id="vector-main-menu-pinned-container" data-unpinned-container-id="vector-main-menu-unpinned-container" > <div class="vector-pinnable-header-label">Main menu</div> <button class="vector-pinnable-header-toggle-button vector-pinnable-header-pin-button" data-event-name="pinnable-header.vector-main-menu.pin">move to sidebar</button> <button class="vector-pinnable-header-toggle-button vector-pinnable-header-unpin-button" data-event-name="pinnable-header.vector-main-menu.unpin">hide</button> </div> <div id="p-navigation" class="vector-menu mw-portlet mw-portlet-navigation" > <div class="vector-menu-heading"> Navigation </div> <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li id="n-mainpage-description" class="mw-list-item"><a href="/wiki/Main_Page" title="Visit the main page [z]" accesskey="z"><span>Main page</span></a></li><li id="n-contents" class="mw-list-item"><a href="/wiki/Wikipedia:Contents" title="Guides to browsing Wikipedia"><span>Contents</span></a></li><li id="n-currentevents" class="mw-list-item"><a href="/wiki/Portal:Current_events" title="Articles related to current events"><span>Current events</span></a></li><li id="n-randompage" class="mw-list-item"><a href="/wiki/Special:Random" title="Visit a randomly selected article [x]" accesskey="x"><span>Random article</span></a></li><li id="n-aboutsite" class="mw-list-item"><a href="/wiki/Wikipedia:About" title="Learn about Wikipedia and how it works"><span>About Wikipedia</span></a></li><li id="n-contactpage" class="mw-list-item"><a href="//en.wikipedia.org/wiki/Wikipedia:Contact_us" title="How to contact Wikipedia"><span>Contact us</span></a></li> </ul> </div> </div> <div id="p-interaction" class="vector-menu mw-portlet mw-portlet-interaction" > <div class="vector-menu-heading"> Contribute </div> <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li id="n-help" class="mw-list-item"><a href="/wiki/Help:Contents" title="Guidance on how to use and edit Wikipedia"><span>Help</span></a></li><li id="n-introduction" class="mw-list-item"><a href="/wiki/Help:Introduction" title="Learn how to edit Wikipedia"><span>Learn to edit</span></a></li><li id="n-portal" class="mw-list-item"><a href="/wiki/Wikipedia:Community_portal" title="The hub for editors"><span>Community portal</span></a></li><li id="n-recentchanges" class="mw-list-item"><a href="/wiki/Special:RecentChanges" title="A list of recent changes to Wikipedia [r]" accesskey="r"><span>Recent changes</span></a></li><li id="n-upload" class="mw-list-item"><a href="/wiki/Wikipedia:File_upload_wizard" title="Add images or other media for use on Wikipedia"><span>Upload file</span></a></li><li id="n-specialpages" class="mw-list-item"><a href="/wiki/Special:SpecialPages"><span>Special pages</span></a></li> </ul> </div> </div> </div> </div> </div> </div> </nav> <a href="/wiki/Main_Page" class="mw-logo"> <img class="mw-logo-icon" src="/static/images/icons/wikipedia.png" alt="" aria-hidden="true" height="50" width="50"> <span class="mw-logo-container skin-invert"> <img class="mw-logo-wordmark" alt="Wikipedia" src="/static/images/mobile/copyright/wikipedia-wordmark-en.svg" style="width: 7.5em; height: 1.125em;"> <img class="mw-logo-tagline" alt="The Free Encyclopedia" src="/static/images/mobile/copyright/wikipedia-tagline-en.svg" width="117" height="13" style="width: 7.3125em; height: 0.8125em;"> </span> </a> </div> <div class="vector-header-end"> <div id="p-search" role="search" class="vector-search-box-vue vector-search-box-collapses vector-search-box-show-thumbnail vector-search-box-auto-expand-width vector-search-box"> <a href="/wiki/Special:Search" class="cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only search-toggle" title="Search Wikipedia [f]" accesskey="f"><span class="vector-icon mw-ui-icon-search mw-ui-icon-wikimedia-search"></span> <span>Search</span> </a> <div class="vector-typeahead-search-container"> <div class="cdx-typeahead-search cdx-typeahead-search--show-thumbnail cdx-typeahead-search--auto-expand-width"> <form action="/w/index.php" id="searchform" class="cdx-search-input cdx-search-input--has-end-button"> <div id="simpleSearch" class="cdx-search-input__input-wrapper" data-search-loc="header-moved"> <div class="cdx-text-input cdx-text-input--has-start-icon"> <input class="cdx-text-input__input" type="search" name="search" placeholder="Search Wikipedia" aria-label="Search Wikipedia" autocapitalize="sentences" title="Search Wikipedia [f]" accesskey="f" id="searchInput" > <span class="cdx-text-input__icon cdx-text-input__start-icon"></span> </div> <input type="hidden" name="title" value="Special:Search"> </div> <button class="cdx-button cdx-search-input__end-button">Search</button> </form> </div> </div> </div> <nav class="vector-user-links vector-user-links-wide" aria-label="Personal tools"> <div class="vector-user-links-main"> <div id="p-vector-user-menu-preferences" class="vector-menu mw-portlet emptyPortlet" > <div class="vector-menu-content"> <ul class="vector-menu-content-list"> </ul> </div> </div> <div id="p-vector-user-menu-userpage" class="vector-menu mw-portlet emptyPortlet" > <div class="vector-menu-content"> <ul class="vector-menu-content-list"> </ul> </div> </div> <nav class="vector-appearance-landmark" aria-label="Appearance"> <div id="vector-appearance-dropdown" class="vector-dropdown " title="Change the appearance of the page's font size, width, and color" > <input type="checkbox" id="vector-appearance-dropdown-checkbox" role="button" aria-haspopup="true" data-event-name="ui.dropdown-vector-appearance-dropdown" class="vector-dropdown-checkbox " aria-label="Appearance" > <label id="vector-appearance-dropdown-label" for="vector-appearance-dropdown-checkbox" class="vector-dropdown-label cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only " aria-hidden="true" ><span class="vector-icon mw-ui-icon-appearance mw-ui-icon-wikimedia-appearance"></span> <span class="vector-dropdown-label-text">Appearance</span> </label> <div class="vector-dropdown-content"> <div id="vector-appearance-unpinned-container" class="vector-unpinned-container"> </div> </div> </div> </nav> <div id="p-vector-user-menu-notifications" class="vector-menu mw-portlet emptyPortlet" > <div class="vector-menu-content"> <ul class="vector-menu-content-list"> </ul> </div> </div> <div id="p-vector-user-menu-overflow" class="vector-menu mw-portlet" > <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li id="pt-sitesupport-2" class="user-links-collapsible-item mw-list-item user-links-collapsible-item"><a data-mw="interface" href="https://donate.wikimedia.org/?wmf_source=donate&wmf_medium=sidebar&wmf_campaign=en.wikipedia.org&uselang=en" class=""><span>Donate</span></a> </li> <li id="pt-createaccount-2" class="user-links-collapsible-item mw-list-item user-links-collapsible-item"><a data-mw="interface" href="/w/index.php?title=Special:CreateAccount&returnto=Pigouvian+tax" title="You are encouraged to create an account and log in; however, it is not mandatory" class=""><span>Create account</span></a> </li> <li id="pt-login-2" class="user-links-collapsible-item mw-list-item user-links-collapsible-item"><a data-mw="interface" href="/w/index.php?title=Special:UserLogin&returnto=Pigouvian+tax" title="You're encouraged to log in; however, it's not mandatory. [o]" accesskey="o" class=""><span>Log in</span></a> </li> </ul> </div> </div> </div> <div id="vector-user-links-dropdown" class="vector-dropdown vector-user-menu vector-button-flush-right vector-user-menu-logged-out" title="Log in and more options" > <input type="checkbox" id="vector-user-links-dropdown-checkbox" role="button" aria-haspopup="true" data-event-name="ui.dropdown-vector-user-links-dropdown" class="vector-dropdown-checkbox " aria-label="Personal tools" > <label id="vector-user-links-dropdown-label" for="vector-user-links-dropdown-checkbox" class="vector-dropdown-label cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only " aria-hidden="true" ><span class="vector-icon mw-ui-icon-ellipsis mw-ui-icon-wikimedia-ellipsis"></span> <span class="vector-dropdown-label-text">Personal tools</span> </label> <div class="vector-dropdown-content"> <div id="p-personal" class="vector-menu mw-portlet mw-portlet-personal user-links-collapsible-item" title="User menu" > <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li id="pt-sitesupport" class="user-links-collapsible-item mw-list-item"><a href="https://donate.wikimedia.org/?wmf_source=donate&wmf_medium=sidebar&wmf_campaign=en.wikipedia.org&uselang=en"><span>Donate</span></a></li><li id="pt-createaccount" class="user-links-collapsible-item mw-list-item"><a href="/w/index.php?title=Special:CreateAccount&returnto=Pigouvian+tax" title="You are encouraged to create an account and log in; however, it is not mandatory"><span class="vector-icon mw-ui-icon-userAdd mw-ui-icon-wikimedia-userAdd"></span> <span>Create account</span></a></li><li id="pt-login" class="user-links-collapsible-item mw-list-item"><a href="/w/index.php?title=Special:UserLogin&returnto=Pigouvian+tax" title="You're encouraged to log in; however, it's not mandatory. [o]" accesskey="o"><span class="vector-icon mw-ui-icon-logIn mw-ui-icon-wikimedia-logIn"></span> <span>Log in</span></a></li> </ul> </div> </div> <div id="p-user-menu-anon-editor" class="vector-menu mw-portlet mw-portlet-user-menu-anon-editor" > <div class="vector-menu-heading"> Pages for logged out editors <a href="/wiki/Help:Introduction" aria-label="Learn more about editing"><span>learn more</span></a> </div> <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li id="pt-anoncontribs" class="mw-list-item"><a href="/wiki/Special:MyContributions" title="A list of edits made from this IP address [y]" accesskey="y"><span>Contributions</span></a></li><li id="pt-anontalk" class="mw-list-item"><a href="/wiki/Special:MyTalk" title="Discussion about edits from this IP address [n]" accesskey="n"><span>Talk</span></a></li> </ul> </div> </div> </div> </div> </nav> </div> </header> </div> <div class="mw-page-container"> <div class="mw-page-container-inner"> <div class="vector-sitenotice-container"> <div id="siteNotice"></div> </div> <div class="vector-column-start"> <div class="vector-main-menu-container"> <div id="mw-navigation"> <nav id="mw-panel" class="vector-main-menu-landmark" aria-label="Site"> <div id="vector-main-menu-pinned-container" class="vector-pinned-container"> </div> </nav> </div> </div> <div class="vector-sticky-pinned-container"> <nav id="mw-panel-toc" aria-label="Contents" data-event-name="ui.sidebar-toc" class="mw-table-of-contents-container vector-toc-landmark"> <div id="vector-toc-pinned-container" class="vector-pinned-container"> <div id="vector-toc" class="vector-toc vector-pinnable-element"> <div class="vector-pinnable-header vector-toc-pinnable-header vector-pinnable-header-pinned" data-feature-name="toc-pinned" data-pinnable-element-id="vector-toc" > <h2 class="vector-pinnable-header-label">Contents</h2> <button class="vector-pinnable-header-toggle-button vector-pinnable-header-pin-button" data-event-name="pinnable-header.vector-toc.pin">move to sidebar</button> <button class="vector-pinnable-header-toggle-button vector-pinnable-header-unpin-button" data-event-name="pinnable-header.vector-toc.unpin">hide</button> </div> <ul class="vector-toc-contents" id="mw-panel-toc-list"> <li id="toc-mw-content-text" class="vector-toc-list-item vector-toc-level-1"> <a href="#" class="vector-toc-link"> <div class="vector-toc-text">(Top)</div> </a> </li> <li id="toc-Pigou's_original_argument" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Pigou's_original_argument"> <div class="vector-toc-text"> <span class="vector-toc-numb">1</span> <span>Pigou's original argument</span> </div> </a> <ul id="toc-Pigou's_original_argument-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Working_of_the_Pigouvian_tax" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Working_of_the_Pigouvian_tax"> <div class="vector-toc-text"> <span class="vector-toc-numb">2</span> <span>Working of the Pigouvian tax</span> </div> </a> <ul id="toc-Working_of_the_Pigouvian_tax-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Lump-sum_tax" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Lump-sum_tax"> <div class="vector-toc-text"> <span class="vector-toc-numb">3</span> <span>Lump-sum tax</span> </div> </a> <ul id="toc-Lump-sum_tax-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Double-dividend_hypothesis" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Double-dividend_hypothesis"> <div class="vector-toc-text"> <span class="vector-toc-numb">4</span> <span>Double-dividend hypothesis</span> </div> </a> <ul id="toc-Double-dividend_hypothesis-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Distortionary_taxation" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Distortionary_taxation"> <div class="vector-toc-text"> <span class="vector-toc-numb">5</span> <span>Distortionary taxation</span> </div> </a> <ul id="toc-Distortionary_taxation-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Alternatives" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Alternatives"> <div class="vector-toc-text"> <span class="vector-toc-numb">6</span> <span>Alternatives</span> </div> </a> <button aria-controls="toc-Alternatives-sublist" class="cdx-button cdx-button--weight-quiet cdx-button--icon-only vector-toc-toggle"> <span class="vector-icon mw-ui-icon-wikimedia-expand"></span> <span>Toggle Alternatives subsection</span> </button> <ul id="toc-Alternatives-sublist" class="vector-toc-list"> <li id="toc-Second-best_optimal_Pigouvian_taxation_(indirect_taxation)" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Second-best_optimal_Pigouvian_taxation_(indirect_taxation)"> <div class="vector-toc-text"> <span class="vector-toc-numb">6.1</span> <span>Second-best optimal Pigouvian taxation (indirect taxation)</span> </div> </a> <ul id="toc-Second-best_optimal_Pigouvian_taxation_(indirect_taxation)-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-No_intervention_(direct_negotiation_between_parties)" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#No_intervention_(direct_negotiation_between_parties)"> <div class="vector-toc-text"> <span class="vector-toc-numb">6.2</span> <span>No intervention (direct negotiation between parties)</span> </div> </a> <ul id="toc-No_intervention_(direct_negotiation_between_parties)-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Firm_limits" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Firm_limits"> <div class="vector-toc-text"> <span class="vector-toc-numb">6.3</span> <span>Firm limits</span> </div> </a> <ul id="toc-Firm_limits-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Cap_and_trade" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Cap_and_trade"> <div class="vector-toc-text"> <span class="vector-toc-numb">6.4</span> <span>Cap and trade</span> </div> </a> <ul id="toc-Cap_and_trade-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> <li id="toc-Examples_of_Pigouvian_taxes" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Examples_of_Pigouvian_taxes"> <div class="vector-toc-text"> <span class="vector-toc-numb">7</span> <span>Examples of Pigouvian taxes</span> </div> </a> <button aria-controls="toc-Examples_of_Pigouvian_taxes-sublist" class="cdx-button cdx-button--weight-quiet cdx-button--icon-only vector-toc-toggle"> <span class="vector-icon mw-ui-icon-wikimedia-expand"></span> <span>Toggle Examples of Pigouvian taxes subsection</span> </button> <ul id="toc-Examples_of_Pigouvian_taxes-sublist" class="vector-toc-list"> <li id="toc-Environmental_tax" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Environmental_tax"> <div class="vector-toc-text"> <span class="vector-toc-numb">7.1</span> <span>Environmental tax</span> </div> </a> <ul id="toc-Environmental_tax-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Congestion_pricing" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Congestion_pricing"> <div class="vector-toc-text"> <span class="vector-toc-numb">7.2</span> <span>Congestion pricing</span> </div> </a> <ul id="toc-Congestion_pricing-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Fat_tax" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Fat_tax"> <div class="vector-toc-text"> <span class="vector-toc-numb">7.3</span> <span>Fat tax</span> </div> </a> <ul id="toc-Fat_tax-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Plastic_taxes_(e.g_on_plastic_bags)" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Plastic_taxes_(e.g_on_plastic_bags)"> <div class="vector-toc-text"> <span class="vector-toc-numb">7.4</span> <span>Plastic taxes (e.g on plastic bags)</span> </div> </a> <ul id="toc-Plastic_taxes_(e.g_on_plastic_bags)-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Market_share_tax" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Market_share_tax"> <div class="vector-toc-text"> <span class="vector-toc-numb">7.5</span> <span>Market share tax</span> </div> </a> <ul id="toc-Market_share_tax-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Noise_taxes" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Noise_taxes"> <div class="vector-toc-text"> <span class="vector-toc-numb">7.6</span> <span>Noise taxes</span> </div> </a> <ul id="toc-Noise_taxes-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> <li id="toc-Criticisms" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Criticisms"> <div class="vector-toc-text"> <span class="vector-toc-numb">8</span> <span>Criticisms</span> </div> </a> <button aria-controls="toc-Criticisms-sublist" class="cdx-button cdx-button--weight-quiet cdx-button--icon-only vector-toc-toggle"> <span class="vector-icon mw-ui-icon-wikimedia-expand"></span> <span>Toggle Criticisms subsection</span> </button> <ul id="toc-Criticisms-sublist" class="vector-toc-list"> <li id="toc-Theoretical_problem" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Theoretical_problem"> <div class="vector-toc-text"> <span class="vector-toc-numb">8.1</span> <span>Theoretical problem</span> </div> </a> <ul id="toc-Theoretical_problem-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Measurement_problem" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Measurement_problem"> <div class="vector-toc-text"> <span class="vector-toc-numb">8.2</span> <span>Measurement problem</span> </div> </a> <ul id="toc-Measurement_problem-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Reciprocal_cost_problem" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Reciprocal_cost_problem"> <div class="vector-toc-text"> <span class="vector-toc-numb">8.3</span> <span>Reciprocal cost problem</span> </div> </a> <ul id="toc-Reciprocal_cost_problem-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Political_problem" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Political_problem"> <div class="vector-toc-text"> <span class="vector-toc-numb">8.4</span> <span>Political problem</span> </div> </a> <ul id="toc-Political_problem-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> <li id="toc-See_also" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#See_also"> <div class="vector-toc-text"> <span class="vector-toc-numb">9</span> <span>See also</span> </div> </a> <ul id="toc-See_also-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-References" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#References"> <div class="vector-toc-text"> <span class="vector-toc-numb">10</span> <span>References</span> </div> </a> <ul id="toc-References-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Further_reading" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Further_reading"> <div class="vector-toc-text"> <span class="vector-toc-numb">11</span> <span>Further reading</span> </div> </a> <ul id="toc-Further_reading-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-External_links" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#External_links"> <div class="vector-toc-text"> <span class="vector-toc-numb">12</span> <span>External links</span> </div> </a> <ul id="toc-External_links-sublist" class="vector-toc-list"> </ul> </li> </ul> </div> </div> </nav> </div> </div> <div class="mw-content-container"> <main id="content" class="mw-body"> <header class="mw-body-header vector-page-titlebar"> <nav aria-label="Contents" class="vector-toc-landmark"> <div id="vector-page-titlebar-toc" class="vector-dropdown vector-page-titlebar-toc vector-button-flush-left" title="Table of Contents" > <input type="checkbox" id="vector-page-titlebar-toc-checkbox" role="button" aria-haspopup="true" data-event-name="ui.dropdown-vector-page-titlebar-toc" class="vector-dropdown-checkbox " aria-label="Toggle the table of contents" > <label id="vector-page-titlebar-toc-label" for="vector-page-titlebar-toc-checkbox" class="vector-dropdown-label cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only " aria-hidden="true" ><span class="vector-icon mw-ui-icon-listBullet mw-ui-icon-wikimedia-listBullet"></span> <span class="vector-dropdown-label-text">Toggle the table of contents</span> </label> <div class="vector-dropdown-content"> <div id="vector-page-titlebar-toc-unpinned-container" class="vector-unpinned-container"> </div> </div> </div> </nav> <h1 id="firstHeading" class="firstHeading mw-first-heading"><span class="mw-page-title-main">Pigouvian tax</span></h1> <div id="p-lang-btn" class="vector-dropdown mw-portlet mw-portlet-lang" > <input type="checkbox" id="p-lang-btn-checkbox" role="button" aria-haspopup="true" data-event-name="ui.dropdown-p-lang-btn" class="vector-dropdown-checkbox mw-interlanguage-selector" aria-label="Go to an article in another language. Available in 26 languages" > <label id="p-lang-btn-label" for="p-lang-btn-checkbox" class="vector-dropdown-label cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--action-progressive mw-portlet-lang-heading-26" aria-hidden="true" ><span class="vector-icon mw-ui-icon-language-progressive mw-ui-icon-wikimedia-language-progressive"></span> <span class="vector-dropdown-label-text">26 languages</span> </label> <div class="vector-dropdown-content"> <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li class="interlanguage-link interwiki-cs mw-list-item"><a href="https://cs.wikipedia.org/wiki/Pigouova_da%C5%88" title="Pigouova daň – Czech" lang="cs" hreflang="cs" data-title="Pigouova daň" data-language-autonym="Čeština" data-language-local-name="Czech" class="interlanguage-link-target"><span>Čeština</span></a></li><li class="interlanguage-link interwiki-da mw-list-item"><a href="https://da.wikipedia.org/wiki/Pigouskat" title="Pigouskat – Danish" lang="da" hreflang="da" data-title="Pigouskat" data-language-autonym="Dansk" data-language-local-name="Danish" class="interlanguage-link-target"><span>Dansk</span></a></li><li class="interlanguage-link interwiki-de mw-list-item"><a href="https://de.wikipedia.org/wiki/Pigou-Steuer" title="Pigou-Steuer – German" lang="de" hreflang="de" data-title="Pigou-Steuer" data-language-autonym="Deutsch" data-language-local-name="German" class="interlanguage-link-target"><span>Deutsch</span></a></li><li class="interlanguage-link interwiki-et mw-list-item"><a href="https://et.wikipedia.org/wiki/Pigou_maks" title="Pigou maks – Estonian" lang="et" hreflang="et" data-title="Pigou maks" data-language-autonym="Eesti" data-language-local-name="Estonian" class="interlanguage-link-target"><span>Eesti</span></a></li><li class="interlanguage-link interwiki-es mw-list-item"><a href="https://es.wikipedia.org/wiki/Impuesto_pigouviano" title="Impuesto pigouviano – Spanish" lang="es" hreflang="es" data-title="Impuesto pigouviano" data-language-autonym="Español" data-language-local-name="Spanish" class="interlanguage-link-target"><span>Español</span></a></li><li class="interlanguage-link interwiki-fa mw-list-item"><a href="https://fa.wikipedia.org/wiki/%D9%85%D8%A7%D9%84%DB%8C%D8%A7%D8%AA_%D9%BE%DB%8C%DA%AF%D9%88%DB%8C%DB%8C" title="مالیات پیگویی – Persian" lang="fa" hreflang="fa" data-title="مالیات پیگویی" data-language-autonym="فارسی" data-language-local-name="Persian" class="interlanguage-link-target"><span>فارسی</span></a></li><li class="interlanguage-link interwiki-fr mw-list-item"><a href="https://fr.wikipedia.org/wiki/Taxe_pigouvienne" title="Taxe pigouvienne – French" lang="fr" hreflang="fr" data-title="Taxe pigouvienne" data-language-autonym="Français" data-language-local-name="French" class="interlanguage-link-target"><span>Français</span></a></li><li class="interlanguage-link interwiki-gl mw-list-item"><a href="https://gl.wikipedia.org/wiki/Imposto_Pigouviano" title="Imposto Pigouviano – Galician" lang="gl" hreflang="gl" data-title="Imposto Pigouviano" data-language-autonym="Galego" data-language-local-name="Galician" class="interlanguage-link-target"><span>Galego</span></a></li><li class="interlanguage-link interwiki-ko mw-list-item"><a href="https://ko.wikipedia.org/wiki/%ED%94%BC%EA%B5%AC%EC%84%B8" title="피구세 – Korean" lang="ko" hreflang="ko" data-title="피구세" data-language-autonym="한국어" data-language-local-name="Korean" class="interlanguage-link-target"><span>한국어</span></a></li><li class="interlanguage-link interwiki-id mw-list-item"><a href="https://id.wikipedia.org/wiki/Pajak_Pigovian" title="Pajak Pigovian – Indonesian" lang="id" hreflang="id" data-title="Pajak Pigovian" data-language-autonym="Bahasa Indonesia" data-language-local-name="Indonesian" class="interlanguage-link-target"><span>Bahasa Indonesia</span></a></li><li class="interlanguage-link interwiki-it mw-list-item"><a href="https://it.wikipedia.org/wiki/Imposta_pigouviana" title="Imposta pigouviana – Italian" lang="it" hreflang="it" data-title="Imposta pigouviana" data-language-autonym="Italiano" data-language-local-name="Italian" class="interlanguage-link-target"><span>Italiano</span></a></li><li class="interlanguage-link interwiki-he mw-list-item"><a href="https://he.wikipedia.org/wiki/%D7%9E%D7%A1_%D7%A4%D7%99%D7%92%D7%95%D7%91%D7%99%D7%90%D7%A0%D7%99" title="מס פיגוביאני – Hebrew" lang="he" hreflang="he" data-title="מס פיגוביאני" data-language-autonym="עברית" data-language-local-name="Hebrew" class="interlanguage-link-target"><span>עברית</span></a></li><li class="interlanguage-link interwiki-hu mw-list-item"><a href="https://hu.wikipedia.org/wiki/Pigou-ad%C3%B3" title="Pigou-adó – Hungarian" lang="hu" hreflang="hu" data-title="Pigou-adó" data-language-autonym="Magyar" data-language-local-name="Hungarian" class="interlanguage-link-target"><span>Magyar</span></a></li><li class="interlanguage-link interwiki-nl mw-list-item"><a href="https://nl.wikipedia.org/wiki/Pigouviaanse_belasting" title="Pigouviaanse belasting – Dutch" lang="nl" hreflang="nl" data-title="Pigouviaanse belasting" data-language-autonym="Nederlands" data-language-local-name="Dutch" class="interlanguage-link-target"><span>Nederlands</span></a></li><li class="interlanguage-link interwiki-ja mw-list-item"><a href="https://ja.wikipedia.org/wiki/%E3%83%94%E3%82%B0%E3%83%BC%E7%A8%8E" title="ピグー税 – Japanese" lang="ja" hreflang="ja" data-title="ピグー税" data-language-autonym="日本語" data-language-local-name="Japanese" class="interlanguage-link-target"><span>日本語</span></a></li><li class="interlanguage-link interwiki-no mw-list-item"><a href="https://no.wikipedia.org/wiki/Pigouskatt" title="Pigouskatt – Norwegian Bokmål" lang="nb" hreflang="nb" data-title="Pigouskatt" data-language-autonym="Norsk bokmål" data-language-local-name="Norwegian Bokmål" class="interlanguage-link-target"><span>Norsk bokmål</span></a></li><li class="interlanguage-link interwiki-pl mw-list-item"><a href="https://pl.wikipedia.org/wiki/Podatek_Pigou" title="Podatek Pigou – Polish" lang="pl" hreflang="pl" data-title="Podatek Pigou" data-language-autonym="Polski" data-language-local-name="Polish" class="interlanguage-link-target"><span>Polski</span></a></li><li class="interlanguage-link interwiki-pt mw-list-item"><a href="https://pt.wikipedia.org/wiki/Imposto_pigouviano" title="Imposto pigouviano – Portuguese" lang="pt" hreflang="pt" data-title="Imposto pigouviano" data-language-autonym="Português" data-language-local-name="Portuguese" class="interlanguage-link-target"><span>Português</span></a></li><li class="interlanguage-link interwiki-ru mw-list-item"><a href="https://ru.wikipedia.org/wiki/%D0%9D%D0%B0%D0%BB%D0%BE%D0%B3_%D0%9F%D0%B8%D0%B3%D1%83" title="Налог Пигу – Russian" lang="ru" hreflang="ru" data-title="Налог Пигу" data-language-autonym="Русский" data-language-local-name="Russian" class="interlanguage-link-target"><span>Русский</span></a></li><li class="interlanguage-link interwiki-simple mw-list-item"><a href="https://simple.wikipedia.org/wiki/Pigovian_tax" title="Pigovian tax – Simple English" lang="en-simple" hreflang="en-simple" data-title="Pigovian tax" data-language-autonym="Simple English" data-language-local-name="Simple English" class="interlanguage-link-target"><span>Simple English</span></a></li><li class="interlanguage-link interwiki-fi mw-list-item"><a href="https://fi.wikipedia.org/wiki/Haittavero" title="Haittavero – Finnish" lang="fi" hreflang="fi" data-title="Haittavero" data-language-autonym="Suomi" data-language-local-name="Finnish" class="interlanguage-link-target"><span>Suomi</span></a></li><li class="interlanguage-link interwiki-sv mw-list-item"><a href="https://sv.wikipedia.org/wiki/Pigouviansk_skatt" title="Pigouviansk skatt – Swedish" lang="sv" hreflang="sv" data-title="Pigouviansk skatt" data-language-autonym="Svenska" data-language-local-name="Swedish" class="interlanguage-link-target"><span>Svenska</span></a></li><li class="interlanguage-link interwiki-tr mw-list-item"><a href="https://tr.wikipedia.org/wiki/Pigou_vergisi" title="Pigou vergisi – Turkish" lang="tr" hreflang="tr" data-title="Pigou vergisi" data-language-autonym="Türkçe" data-language-local-name="Turkish" class="interlanguage-link-target"><span>Türkçe</span></a></li><li class="interlanguage-link interwiki-uk mw-list-item"><a href="https://uk.wikipedia.org/wiki/%D0%9F%D0%BE%D0%B4%D0%B0%D1%82%D0%BE%D0%BA_%D0%9F%D1%96%D2%91%D1%83" title="Податок Піґу – Ukrainian" lang="uk" hreflang="uk" data-title="Податок Піґу" data-language-autonym="Українська" data-language-local-name="Ukrainian" class="interlanguage-link-target"><span>Українська</span></a></li><li class="interlanguage-link interwiki-vi mw-list-item"><a href="https://vi.wikipedia.org/wiki/Thu%E1%BA%BF_Pigou" title="Thuế Pigou – Vietnamese" lang="vi" hreflang="vi" data-title="Thuế Pigou" data-language-autonym="Tiếng Việt" data-language-local-name="Vietnamese" class="interlanguage-link-target"><span>Tiếng Việt</span></a></li><li class="interlanguage-link interwiki-zh mw-list-item"><a href="https://zh.wikipedia.org/wiki/%E5%BA%87%E5%8F%A4%E7%A8%8E" title="庇古税 – Chinese" lang="zh" hreflang="zh" data-title="庇古税" data-language-autonym="中文" data-language-local-name="Chinese" class="interlanguage-link-target"><span>中文</span></a></li> </ul> <div class="after-portlet after-portlet-lang"><span class="wb-langlinks-edit wb-langlinks-link"><a href="https://www.wikidata.org/wiki/Special:EntityPage/Q931921#sitelinks-wikipedia" title="Edit interlanguage links" class="wbc-editpage">Edit links</a></span></div> </div> </div> </div> </header> <div class="vector-page-toolbar"> <div class="vector-page-toolbar-container"> <div id="left-navigation"> <nav aria-label="Namespaces"> <div id="p-associated-pages" class="vector-menu vector-menu-tabs mw-portlet mw-portlet-associated-pages" > <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li id="ca-nstab-main" class="selected vector-tab-noicon mw-list-item"><a href="/wiki/Pigouvian_tax" title="View the content page [c]" accesskey="c"><span>Article</span></a></li><li id="ca-talk" class="vector-tab-noicon mw-list-item"><a href="/wiki/Talk:Pigouvian_tax" rel="discussion" title="Discuss improvements to the content page [t]" accesskey="t"><span>Talk</span></a></li> </ul> </div> </div> <div id="vector-variants-dropdown" class="vector-dropdown emptyPortlet" > <input type="checkbox" id="vector-variants-dropdown-checkbox" role="button" aria-haspopup="true" data-event-name="ui.dropdown-vector-variants-dropdown" class="vector-dropdown-checkbox " aria-label="Change language variant" > <label id="vector-variants-dropdown-label" for="vector-variants-dropdown-checkbox" class="vector-dropdown-label cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet" aria-hidden="true" ><span class="vector-dropdown-label-text">English</span> </label> <div class="vector-dropdown-content"> <div id="p-variants" class="vector-menu mw-portlet mw-portlet-variants emptyPortlet" > <div class="vector-menu-content"> <ul class="vector-menu-content-list"> </ul> </div> </div> </div> </div> </nav> </div> <div id="right-navigation" class="vector-collapsible"> <nav aria-label="Views"> <div id="p-views" class="vector-menu vector-menu-tabs mw-portlet mw-portlet-views" > <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li id="ca-view" class="selected vector-tab-noicon mw-list-item"><a href="/wiki/Pigouvian_tax"><span>Read</span></a></li><li id="ca-edit" class="vector-tab-noicon mw-list-item"><a href="/w/index.php?title=Pigouvian_tax&action=edit" title="Edit this page [e]" accesskey="e"><span>Edit</span></a></li><li id="ca-history" class="vector-tab-noicon mw-list-item"><a href="/w/index.php?title=Pigouvian_tax&action=history" title="Past revisions of this page [h]" accesskey="h"><span>View history</span></a></li> </ul> </div> </div> </nav> <nav class="vector-page-tools-landmark" aria-label="Page tools"> <div id="vector-page-tools-dropdown" class="vector-dropdown vector-page-tools-dropdown" > <input type="checkbox" id="vector-page-tools-dropdown-checkbox" role="button" aria-haspopup="true" data-event-name="ui.dropdown-vector-page-tools-dropdown" class="vector-dropdown-checkbox " aria-label="Tools" > <label id="vector-page-tools-dropdown-label" for="vector-page-tools-dropdown-checkbox" class="vector-dropdown-label cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet" aria-hidden="true" ><span class="vector-dropdown-label-text">Tools</span> </label> <div class="vector-dropdown-content"> <div id="vector-page-tools-unpinned-container" class="vector-unpinned-container"> <div id="vector-page-tools" class="vector-page-tools vector-pinnable-element"> <div class="vector-pinnable-header vector-page-tools-pinnable-header vector-pinnable-header-unpinned" data-feature-name="page-tools-pinned" data-pinnable-element-id="vector-page-tools" data-pinned-container-id="vector-page-tools-pinned-container" data-unpinned-container-id="vector-page-tools-unpinned-container" > <div class="vector-pinnable-header-label">Tools</div> <button class="vector-pinnable-header-toggle-button vector-pinnable-header-pin-button" data-event-name="pinnable-header.vector-page-tools.pin">move to sidebar</button> <button class="vector-pinnable-header-toggle-button vector-pinnable-header-unpin-button" data-event-name="pinnable-header.vector-page-tools.unpin">hide</button> </div> <div id="p-cactions" class="vector-menu mw-portlet mw-portlet-cactions emptyPortlet vector-has-collapsible-items" title="More options" > <div class="vector-menu-heading"> Actions </div> <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li id="ca-more-view" class="selected vector-more-collapsible-item mw-list-item"><a href="/wiki/Pigouvian_tax"><span>Read</span></a></li><li id="ca-more-edit" class="vector-more-collapsible-item mw-list-item"><a href="/w/index.php?title=Pigouvian_tax&action=edit" title="Edit this page [e]" accesskey="e"><span>Edit</span></a></li><li id="ca-more-history" class="vector-more-collapsible-item mw-list-item"><a href="/w/index.php?title=Pigouvian_tax&action=history"><span>View history</span></a></li> </ul> </div> </div> <div id="p-tb" class="vector-menu mw-portlet mw-portlet-tb" > <div class="vector-menu-heading"> General </div> <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li id="t-whatlinkshere" class="mw-list-item"><a href="/wiki/Special:WhatLinksHere/Pigouvian_tax" title="List of all English Wikipedia pages containing links to this page [j]" accesskey="j"><span>What links here</span></a></li><li id="t-recentchangeslinked" class="mw-list-item"><a href="/wiki/Special:RecentChangesLinked/Pigouvian_tax" rel="nofollow" title="Recent changes in pages linked from this page [k]" accesskey="k"><span>Related changes</span></a></li><li id="t-upload" class="mw-list-item"><a href="//en.wikipedia.org/wiki/Wikipedia:File_Upload_Wizard" title="Upload files [u]" accesskey="u"><span>Upload file</span></a></li><li id="t-permalink" class="mw-list-item"><a href="/w/index.php?title=Pigouvian_tax&oldid=1278498059" title="Permanent link to this revision of this page"><span>Permanent link</span></a></li><li id="t-info" class="mw-list-item"><a href="/w/index.php?title=Pigouvian_tax&action=info" title="More information about this page"><span>Page information</span></a></li><li id="t-cite" class="mw-list-item"><a href="/w/index.php?title=Special:CiteThisPage&page=Pigouvian_tax&id=1278498059&wpFormIdentifier=titleform" title="Information on how to cite this page"><span>Cite this page</span></a></li><li id="t-urlshortener" class="mw-list-item"><a href="/w/index.php?title=Special:UrlShortener&url=https%3A%2F%2Fen.wikipedia.org%2Fwiki%2FPigouvian_tax"><span>Get shortened URL</span></a></li><li id="t-urlshortener-qrcode" class="mw-list-item"><a href="/w/index.php?title=Special:QrCode&url=https%3A%2F%2Fen.wikipedia.org%2Fwiki%2FPigouvian_tax"><span>Download QR code</span></a></li> </ul> </div> </div> <div id="p-coll-print_export" class="vector-menu mw-portlet mw-portlet-coll-print_export" > <div class="vector-menu-heading"> Print/export </div> <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li id="coll-download-as-rl" class="mw-list-item"><a href="/w/index.php?title=Special:DownloadAsPdf&page=Pigouvian_tax&action=show-download-screen" title="Download this page as a PDF file"><span>Download as PDF</span></a></li><li id="t-print" class="mw-list-item"><a href="/w/index.php?title=Pigouvian_tax&printable=yes" title="Printable version of this page [p]" accesskey="p"><span>Printable version</span></a></li> </ul> </div> </div> <div id="p-wikibase-otherprojects" class="vector-menu mw-portlet mw-portlet-wikibase-otherprojects" > <div class="vector-menu-heading"> In other projects </div> <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li class="wb-otherproject-link wb-otherproject-commons mw-list-item"><a href="https://commons.wikimedia.org/wiki/Category:Pigovian_tax" hreflang="en"><span>Wikimedia Commons</span></a></li><li id="t-wikibase" class="wb-otherproject-link wb-otherproject-wikibase-dataitem mw-list-item"><a href="https://www.wikidata.org/wiki/Special:EntityPage/Q931921" title="Structured data on this page hosted by Wikidata [g]" accesskey="g"><span>Wikidata item</span></a></li> </ul> </div> </div> </div> </div> </div> </div> </nav> </div> </div> </div> <div class="vector-column-end"> <div class="vector-sticky-pinned-container"> <nav class="vector-page-tools-landmark" aria-label="Page tools"> <div id="vector-page-tools-pinned-container" class="vector-pinned-container"> </div> </nav> <nav class="vector-appearance-landmark" aria-label="Appearance"> <div id="vector-appearance-pinned-container" class="vector-pinned-container"> <div id="vector-appearance" class="vector-appearance vector-pinnable-element"> <div class="vector-pinnable-header vector-appearance-pinnable-header vector-pinnable-header-pinned" data-feature-name="appearance-pinned" data-pinnable-element-id="vector-appearance" data-pinned-container-id="vector-appearance-pinned-container" data-unpinned-container-id="vector-appearance-unpinned-container" > <div class="vector-pinnable-header-label">Appearance</div> <button class="vector-pinnable-header-toggle-button vector-pinnable-header-pin-button" data-event-name="pinnable-header.vector-appearance.pin">move to sidebar</button> <button class="vector-pinnable-header-toggle-button vector-pinnable-header-unpin-button" data-event-name="pinnable-header.vector-appearance.unpin">hide</button> </div> </div> </div> </nav> </div> </div> <div id="bodyContent" class="vector-body" aria-labelledby="firstHeading" data-mw-ve-target-container> <div class="vector-body-before-content"> <div class="mw-indicators"> </div> <div id="siteSub" class="noprint">From Wikipedia, the free encyclopedia</div> </div> <div id="contentSub"><div id="mw-content-subtitle"></div></div> <div id="mw-content-text" class="mw-body-content"><div class="mw-content-ltr mw-parser-output" lang="en" dir="ltr"><div class="shortdescription nomobile noexcerpt noprint searchaux" style="display:none">Tax on activities generating negative externalities</div> <style data-mw-deduplicate="TemplateStyles:r1251242444">.mw-parser-output .ambox{border:1px solid #a2a9b1;border-left:10px solid #36c;background-color:#fbfbfb;box-sizing:border-box}.mw-parser-output .ambox+link+.ambox,.mw-parser-output .ambox+link+style+.ambox,.mw-parser-output .ambox+link+link+.ambox,.mw-parser-output .ambox+.mw-empty-elt+link+.ambox,.mw-parser-output .ambox+.mw-empty-elt+link+style+.ambox,.mw-parser-output .ambox+.mw-empty-elt+link+link+.ambox{margin-top:-1px}html body.mediawiki .mw-parser-output .ambox.mbox-small-left{margin:4px 1em 4px 0;overflow:hidden;width:238px;border-collapse:collapse;font-size:88%;line-height:1.25em}.mw-parser-output .ambox-speedy{border-left:10px solid #b32424;background-color:#fee7e6}.mw-parser-output .ambox-delete{border-left:10px solid #b32424}.mw-parser-output .ambox-content{border-left:10px solid #f28500}.mw-parser-output .ambox-style{border-left:10px solid #fc3}.mw-parser-output .ambox-move{border-left:10px solid #9932cc}.mw-parser-output .ambox-protection{border-left:10px solid #a2a9b1}.mw-parser-output .ambox .mbox-text{border:none;padding:0.25em 0.5em;width:100%}.mw-parser-output .ambox .mbox-image{border:none;padding:2px 0 2px 0.5em;text-align:center}.mw-parser-output .ambox .mbox-imageright{border:none;padding:2px 0.5em 2px 0;text-align:center}.mw-parser-output .ambox .mbox-empty-cell{border:none;padding:0;width:1px}.mw-parser-output .ambox .mbox-image-div{width:52px}@media(min-width:720px){.mw-parser-output .ambox{margin:0 10%}}@media print{body.ns-0 .mw-parser-output .ambox{display:none!important}}</style><table class="box-Tone plainlinks metadata ambox ambox-style ambox-Tone" role="presentation"><tbody><tr><td class="mbox-image"><div class="mbox-image-div"><span typeof="mw:File"><span><img alt="" src="//upload.wikimedia.org/wikipedia/en/thumb/f/f2/Edit-clear.svg/40px-Edit-clear.svg.png" decoding="async" width="40" height="40" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/en/thumb/f/f2/Edit-clear.svg/60px-Edit-clear.svg.png 1.5x, //upload.wikimedia.org/wikipedia/en/thumb/f/f2/Edit-clear.svg/80px-Edit-clear.svg.png 2x" data-file-width="48" data-file-height="48" /></span></span></div></td><td class="mbox-text"><div class="mbox-text-span">This article's <b>tone or style may not reflect the <a href="/wiki/Wikipedia:Writing_better_articles#Tone" title="Wikipedia:Writing better articles">encyclopedic tone</a> used on Wikipedia</b>.<span class="hide-when-compact"> See Wikipedia's <a href="/wiki/Wikipedia:Writing_better_articles#Tone" title="Wikipedia:Writing better articles">guide to writing better articles</a> for suggestions.</span> <span class="date-container"><i>(<span class="date">April 2016</span>)</i></span><span class="hide-when-compact"><i> (<small><a href="/wiki/Help:Maintenance_template_removal" title="Help:Maintenance template removal">Learn how and when to remove this message</a></small>)</i></span></div></td></tr></tbody></table> <style data-mw-deduplicate="TemplateStyles:r1129693374">.mw-parser-output .hlist dl,.mw-parser-output .hlist ol,.mw-parser-output .hlist ul{margin:0;padding:0}.mw-parser-output .hlist dd,.mw-parser-output .hlist dt,.mw-parser-output .hlist li{margin:0;display:inline}.mw-parser-output .hlist.inline,.mw-parser-output .hlist.inline dl,.mw-parser-output .hlist.inline ol,.mw-parser-output .hlist.inline ul,.mw-parser-output .hlist dl dl,.mw-parser-output .hlist dl ol,.mw-parser-output .hlist dl ul,.mw-parser-output .hlist ol dl,.mw-parser-output .hlist ol ol,.mw-parser-output .hlist ol ul,.mw-parser-output .hlist ul dl,.mw-parser-output .hlist ul ol,.mw-parser-output .hlist ul ul{display:inline}.mw-parser-output .hlist .mw-empty-li{display:none}.mw-parser-output .hlist dt::after{content:": "}.mw-parser-output .hlist dd::after,.mw-parser-output .hlist li::after{content:" · ";font-weight:bold}.mw-parser-output .hlist dd:last-child::after,.mw-parser-output .hlist dt:last-child::after,.mw-parser-output .hlist li:last-child::after{content:none}.mw-parser-output .hlist dd dd:first-child::before,.mw-parser-output .hlist dd dt:first-child::before,.mw-parser-output .hlist dd li:first-child::before,.mw-parser-output .hlist dt dd:first-child::before,.mw-parser-output .hlist dt dt:first-child::before,.mw-parser-output .hlist dt li:first-child::before,.mw-parser-output .hlist li dd:first-child::before,.mw-parser-output .hlist li dt:first-child::before,.mw-parser-output .hlist li li:first-child::before{content:" (";font-weight:normal}.mw-parser-output .hlist dd dd:last-child::after,.mw-parser-output .hlist dd dt:last-child::after,.mw-parser-output .hlist dd li:last-child::after,.mw-parser-output .hlist dt dd:last-child::after,.mw-parser-output .hlist dt dt:last-child::after,.mw-parser-output .hlist dt li:last-child::after,.mw-parser-output .hlist li dd:last-child::after,.mw-parser-output .hlist li dt:last-child::after,.mw-parser-output .hlist li li:last-child::after{content:")";font-weight:normal}.mw-parser-output .hlist ol{counter-reset:listitem}.mw-parser-output .hlist ol>li{counter-increment:listitem}.mw-parser-output .hlist ol>li::before{content:" "counter(listitem)"\a0 "}.mw-parser-output .hlist dd ol>li:first-child::before,.mw-parser-output .hlist dt ol>li:first-child::before,.mw-parser-output .hlist li ol>li:first-child::before{content:" ("counter(listitem)"\a0 "}</style><style data-mw-deduplicate="TemplateStyles:r1246091330">.mw-parser-output .sidebar{width:22em;float:right;clear:right;margin:0.5em 0 1em 1em;background:var(--background-color-neutral-subtle,#f8f9fa);border:1px solid var(--border-color-base,#a2a9b1);padding:0.2em;text-align:center;line-height:1.4em;font-size:88%;border-collapse:collapse;display:table}body.skin-minerva .mw-parser-output .sidebar{display:table!important;float:right!important;margin:0.5em 0 1em 1em!important}.mw-parser-output .sidebar-subgroup{width:100%;margin:0;border-spacing:0}.mw-parser-output .sidebar-left{float:left;clear:left;margin:0.5em 1em 1em 0}.mw-parser-output .sidebar-none{float:none;clear:both;margin:0.5em 1em 1em 0}.mw-parser-output .sidebar-outer-title{padding:0 0.4em 0.2em;font-size:125%;line-height:1.2em;font-weight:bold}.mw-parser-output .sidebar-top-image{padding:0.4em}.mw-parser-output .sidebar-top-caption,.mw-parser-output .sidebar-pretitle-with-top-image,.mw-parser-output .sidebar-caption{padding:0.2em 0.4em 0;line-height:1.2em}.mw-parser-output .sidebar-pretitle{padding:0.4em 0.4em 0;line-height:1.2em}.mw-parser-output .sidebar-title,.mw-parser-output .sidebar-title-with-pretitle{padding:0.2em 0.8em;font-size:145%;line-height:1.2em}.mw-parser-output .sidebar-title-with-pretitle{padding:0.1em 0.4em}.mw-parser-output .sidebar-image{padding:0.2em 0.4em 0.4em}.mw-parser-output .sidebar-heading{padding:0.1em 0.4em}.mw-parser-output .sidebar-content{padding:0 0.5em 0.4em}.mw-parser-output .sidebar-content-with-subgroup{padding:0.1em 0.4em 0.2em}.mw-parser-output .sidebar-above,.mw-parser-output .sidebar-below{padding:0.3em 0.8em;font-weight:bold}.mw-parser-output .sidebar-collapse .sidebar-above,.mw-parser-output .sidebar-collapse .sidebar-below{border-top:1px solid #aaa;border-bottom:1px solid #aaa}.mw-parser-output .sidebar-navbar{text-align:right;font-size:115%;padding:0 0.4em 0.4em}.mw-parser-output .sidebar-list-title{padding:0 0.4em;text-align:left;font-weight:bold;line-height:1.6em;font-size:105%}.mw-parser-output .sidebar-list-title-c{padding:0 0.4em;text-align:center;margin:0 3.3em}@media(max-width:640px){body.mediawiki .mw-parser-output .sidebar{width:100%!important;clear:both;float:none!important;margin-left:0!important;margin-right:0!important}}body.skin--responsive .mw-parser-output .sidebar a>img{max-width:none!important}@media screen{html.skin-theme-clientpref-night .mw-parser-output .sidebar:not(.notheme) .sidebar-list-title,html.skin-theme-clientpref-night .mw-parser-output .sidebar:not(.notheme) .sidebar-title-with-pretitle{background:transparent!important}html.skin-theme-clientpref-night .mw-parser-output .sidebar:not(.notheme) .sidebar-title-with-pretitle a{color:var(--color-progressive)!important}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .sidebar:not(.notheme) .sidebar-list-title,html.skin-theme-clientpref-os .mw-parser-output .sidebar:not(.notheme) .sidebar-title-with-pretitle{background:transparent!important}html.skin-theme-clientpref-os .mw-parser-output .sidebar:not(.notheme) .sidebar-title-with-pretitle a{color:var(--color-progressive)!important}}@media print{body.ns-0 .mw-parser-output .sidebar{display:none!important}}</style><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374" /><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1246091330" /><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374" /><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1246091330" /><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374" /><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1246091330" /><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374" /><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1246091330" /><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374" /><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1246091330" /><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374" /><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1246091330" /><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374" /><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1246091330" /><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374" /><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1246091330" /><table class="sidebar sidebar-collapse nomobile nowraplinks hlist"><tbody><tr><td class="sidebar-pretitle">Part of a series on</td></tr><tr><th class="sidebar-title-with-pretitle"><a href="/wiki/Tax" title="Tax">Taxation</a></th></tr><tr><td class="sidebar-image"><span typeof="mw:File"><a href="/wiki/File:10_Percent_Legacy_and_Succession_Duty_Impressed_Duty_Stamp.svg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/b/b1/10_Percent_Legacy_and_Succession_Duty_Impressed_Duty_Stamp.svg/100px-10_Percent_Legacy_and_Succession_Duty_Impressed_Duty_Stamp.svg.png" decoding="async" width="100" height="113" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/b/b1/10_Percent_Legacy_and_Succession_Duty_Impressed_Duty_Stamp.svg/150px-10_Percent_Legacy_and_Succession_Duty_Impressed_Duty_Stamp.svg.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/b/b1/10_Percent_Legacy_and_Succession_Duty_Impressed_Duty_Stamp.svg/200px-10_Percent_Legacy_and_Succession_Duty_Impressed_Duty_Stamp.svg.png 2x" data-file-width="440" data-file-height="496" /></a></span></td></tr><tr><td class="sidebar-above"> An aspect of <a href="/wiki/Fiscal_policy" title="Fiscal policy">fiscal policy</a></td></tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background-color: #efefef;;color: var(--color-base)"><a href="/wiki/Tax_policy" title="Tax policy">Policies</a></div><div class="sidebar-list-content mw-collapsible-content" style="background-color: #ffffff;"> <ul><li><a href="/wiki/Economic_justice" title="Economic justice">Economic justice</a></li> <li><a href="/wiki/Government_revenue" title="Government revenue">Government revenue</a></li> <li><a href="/wiki/Property_tax_equalization" title="Property tax equalization">Property tax equalization</a></li> <li><a href="/wiki/Tax_revenue" title="Tax revenue">Tax revenue</a></li> <li><a href="/wiki/Non-tax_revenue" title="Non-tax revenue">Non-tax revenue</a></li> <li><a href="/wiki/Tax_law" title="Tax law">Tax law</a></li> <li><a href="/wiki/Tax_bracket" title="Tax bracket">Tax bracket</a> <ul><li><a href="/wiki/Flat_tax" title="Flat tax">Flat tax</a></li></ul></li> <li><a href="/wiki/Income_tax_threshold" title="Income tax threshold">Tax threshold</a></li> <li><a href="/wiki/Taxation_as_theft" title="Taxation as theft">Taxation as theft</a></li> <li><a href="/wiki/Tax_shift" title="Tax shift">Tax shift</a></li> <li><a href="/wiki/Tax_cut" title="Tax cut">Tax cut</a></li> <li><a href="/wiki/Tax_advantage" title="Tax advantage">Tax advantage</a></li> <li><a href="/wiki/Tax_incentive" title="Tax incentive">Tax incentive</a></li> <li><a href="/wiki/Tax_reform" title="Tax reform">Tax reform</a></li> <li><a href="/wiki/Tax_harmonization" title="Tax harmonization">Tax harmonization</a></li> <li><a href="/wiki/Tax_competition" title="Tax competition">Tax competition</a></li> <li><a href="/wiki/Double_taxation" title="Double taxation">Double taxation</a></li> <li><a href="/wiki/No_taxation_without_representation" title="No taxation without representation">Representation</a></li> <li><a href="/wiki/Medical_savings_account" title="Medical savings account">Medical savings account</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background-color: #efefef;;color: var(--color-base)"><a href="/wiki/Tax#Economic_effects" title="Tax">Economics</a></div><div class="sidebar-list-content mw-collapsible-content" style="background-color: #ffffff;"><table class="sidebar nomobile nowraplinks" style="background-color: transparent; color: var( --color-base, #202122 ); border-collapse:collapse; border-spacing:0px; border:none; width:100%; margin:0px; font-size:100%; clear:none; float:none"><tbody><tr><th class="sidebar-heading" style="background:#e9e9ff;font-weight:normal;font-style:italic;"> General Theory</th></tr><tr><td class="sidebar-content hlist" style="padding-left:0.5em;padding-right:0.5em;"> <ul><li><a href="/wiki/Effect_of_taxes_and_subsidies_on_price" title="Effect of taxes and subsidies on price">Price effect</a></li> <li><a href="/wiki/Excess_burden_of_taxation" title="Excess burden of taxation">Excess burden</a></li> <li><a href="/wiki/Tax_incidence" title="Tax incidence">Tax incidence</a></li> <li><a href="/wiki/Laffer_curve" title="Laffer curve">Laffer curve</a></li> <li><a href="/wiki/Optimal_tax" title="Optimal tax">Optimal tax</a></li> <li><a href="/wiki/Fiscal_illusion" title="Fiscal illusion">Fiscal illusion</a></li> <li><a href="/wiki/Theories_of_taxation" title="Theories of taxation">Theories</a></li> <li><a href="/wiki/Optimal_capital_income_taxation" title="Optimal capital income taxation">Optimal capital income taxation</a></li></ul></td> </tr><tr><th class="sidebar-heading" style="background:#e9e9ff;font-weight:normal;font-style:italic;"> Distribution of Tax</th></tr><tr><td class="sidebar-content hlist" style="padding-top:0.15em;"> <ul><li><a href="/wiki/Tax_rate" title="Tax rate">Tax rate</a></li> <li><a href="/wiki/Flat_tax" title="Flat tax">Flat</a></li> <li><a href="/wiki/Progressive_tax" title="Progressive tax">Progressive</a></li> <li><a href="/wiki/Regressive_tax" title="Regressive tax">Regressive</a></li> <li><a href="/wiki/Proportional_tax" title="Proportional tax">Proportional</a></li></ul></td> </tr></tbody></table></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background-color: #efefef;;color: var(--color-base)"><a href="/wiki/Tax_collection" class="mw-redirect" title="Tax collection">Collection</a></div><div class="sidebar-list-content mw-collapsible-content" style="background-color: #ffffff;"> <ul><li><a href="/wiki/Revenue_service" title="Revenue service">Revenue service</a></li> <li><a href="/wiki/Revenue_stamp" title="Revenue stamp">Revenue stamp</a></li> <li><a href="/wiki/Tax_assessment" title="Tax assessment">Tax assessment</a></li> <li><a href="/wiki/Taxable_income" title="Taxable income">Taxable income</a></li> <li><a href="/wiki/Tax_lien" title="Tax lien">Tax lien</a></li> <li><a href="/wiki/Tax_refund" title="Tax refund">Tax refund</a></li> <li><a href="/wiki/Tax_shield" title="Tax shield">Tax shield</a></li> <li><a href="/wiki/Tax_residence" title="Tax residence">Tax residence</a></li> <li><a href="/wiki/Tax_preparation" class="mw-redirect" title="Tax preparation">Tax preparation</a></li> <li><a href="/wiki/Tax_protester" title="Tax protester">Tax protester</a></li> <li><a href="/wiki/Tax_investigation" title="Tax investigation">Tax investigation</a></li> <li><a href="/wiki/Tax_collector" title="Tax collector">Tax collector</a></li> <li><a href="/wiki/Tax_withholding" title="Tax withholding">Tax withholding</a></li> <li><a href="/wiki/Privatized_tax_collection" title="Privatized tax collection">Private tax collection</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background-color: #efefef;;color: var(--color-base)"><a href="/wiki/Tax_noncompliance" title="Tax noncompliance">Noncompliance</a></div><div class="sidebar-list-content mw-collapsible-content" style="background-color: #ffffff;"><table class="sidebar nomobile nowraplinks" style="background-color: transparent; color: var( --color-base, #202122 ); border-collapse:collapse; border-spacing:0px; border:none; width:100%; margin:0px; font-size:100%; clear:none; float:none"><tbody><tr><th class="sidebar-heading" style="background:#e9e9ff;font-weight:normal;font-style:italic;"> Legal <a href="/wiki/Tax_avoidance" title="Tax avoidance">tax avoidance</a></th></tr><tr><td class="sidebar-content hlist" style="padding-left:0.5em;padding-right:0.5em;"> <ul><li><a href="/wiki/Base_erosion_and_profit_shifting" title="Base erosion and profit shifting">Base erosion and profit shifting</a> (BEPS) <ul><li><a href="/wiki/Double_Irish_arrangement" title="Double Irish arrangement">Double Irish</a> <ul><li><a href="/wiki/Double_Irish_arrangement#Replacement_by_single_malt" title="Double Irish arrangement">Single Malt</a></li> <li><a href="/wiki/Double_Irish_arrangement#Backstop_of_capital_allowances" title="Double Irish arrangement">CAIA</a></li></ul></li> <li><a href="/wiki/Dutch_Sandwich" title="Dutch Sandwich">Dutch Sandwich</a></li></ul></li> <li><a href="/wiki/Tax_credit" title="Tax credit">Tax credit</a></li> <li><a href="/wiki/Tax_deduction" title="Tax deduction">Tax deduction</a></li> <li><a href="/wiki/Tax_exemption" title="Tax exemption">Tax exemption</a></li> <li><a href="/wiki/Taxpayer_groups" title="Taxpayer groups">Taxpayer groups</a></li> <li><a href="/wiki/Tax_holiday" title="Tax holiday">Tax holiday</a></li> <li><a href="/wiki/Tax_inversion" title="Tax inversion">Tax inversion</a></li> <li><a href="/wiki/Farm_(revenue_leasing)" title="Farm (revenue leasing)">Tax farming</a></li> <li><a href="/wiki/Repatriation_tax_avoidance" title="Repatriation tax avoidance">Repatriation tax avoidance</a></li> <li><a href="/wiki/Tax_patent" title="Tax patent">Tax patent</a></li> <li><a href="/wiki/Tax_shelter" title="Tax shelter">Tax shelter</a></li></ul></td> </tr><tr><th class="sidebar-heading" style="background:#e9e9ff;font-weight:normal;font-style:italic;"> Illegal <a href="/wiki/Tax_evasion" title="Tax evasion">tax evasion</a></th></tr><tr><td class="sidebar-content hlist" style="padding-left:0.5em;padding-right:0.5em;"> <ul><li><a href="/wiki/Tax_amnesty" title="Tax amnesty">Tax amnesty</a></li> <li><a href="/wiki/Black_market" title="Black market">Black market</a></li> <li><a href="/wiki/Debtors%27_prison" title="Debtors' prison">Debtors' prison</a></li> <li><a href="/wiki/Tax_exile" title="Tax exile">Tax exile</a></li> <li><a href="/wiki/Smuggling" title="Smuggling">Smuggling</a></li> <li><a href="/wiki/Tax_resistance" title="Tax resistance">Tax resistance</a></li> <li><a href="/wiki/Transfer_mispricing" title="Transfer mispricing">Transfer mispricing</a></li> <li><a href="/wiki/Unreported_employment" title="Unreported employment">Unreported employment</a></li></ul></td> </tr><tr><th class="sidebar-heading" style="background:#e9e9ff;font-weight:normal;font-style:italic;"> Locations</th></tr><tr><td class="sidebar-content hlist" style="padding-top:0.15em;"> <ul><li><a href="/wiki/Tax_haven" title="Tax haven">Tax havens</a></li> <li><a href="/wiki/Corporate_haven" title="Corporate haven">Corporate havens</a></li> <li><a href="/wiki/Offshore_financial_centre" title="Offshore financial centre">Offshore financial centres</a> (OFCs)</li> <li><a href="/wiki/Offshore_magic_circle" title="Offshore magic circle">Offshore magic circle</a></li> <li><a href="/wiki/Conduit_and_sink_OFCs" title="Conduit and sink OFCs">Conduit and sink OFCs</a></li> <li><a href="/wiki/Financial_centre" title="Financial centre">Financial centres</a></li> <li><a href="/wiki/Financial_Secrecy_Index" title="Financial Secrecy Index">Financial Secrecy Index</a></li></ul></td> </tr><tr><th class="sidebar-heading" style="background:#e9e9ff;font-weight:normal;font-style:italic;"> Major examples</th></tr><tr><td class="sidebar-content hlist" style="padding-top:0.15em;"> <ul><li><a href="/wiki/Ireland_as_a_tax_haven" title="Ireland as a tax haven">Ireland as a tax haven</a> <ul><li><i><a href="/wiki/Apple%27s_EU_tax_dispute" title="Apple's EU tax dispute">Ireland v. Commission</a></i></li> <li><a href="/wiki/Leprechaun_economics" title="Leprechaun economics">Leprechaun economics</a></li></ul></li> <li><a href="/wiki/2008_Liechtenstein_tax_affair" title="2008 Liechtenstein tax affair">Liechtenstein tax affair</a></li> <li><a href="/wiki/LuxLeaks" title="LuxLeaks">Luxembourg Leaks</a></li> <li><a href="/wiki/Offshore_Leaks" title="Offshore Leaks">Offshore Leaks</a></li> <li><a href="/wiki/Paradise_Papers" title="Paradise Papers">Paradise Papers</a></li> <li><a href="/wiki/Panama_Papers" title="Panama Papers">Panama Papers</a></li> <li><a href="/wiki/Swiss_Leaks" title="Swiss Leaks">Swiss Leaks</a></li> <li><a href="/wiki/United_States_as_a_tax_haven" title="United States as a tax haven">United States as a tax haven</a></li> <li><a href="/wiki/Panama_as_a_tax_haven" title="Panama as a tax haven">Panama as a tax haven</a></li></ul></td> </tr></tbody></table></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background-color: #efefef;;color: var(--color-base)"><a href="/wiki/List_of_taxes" title="List of taxes">Types</a></div><div class="sidebar-list-content mw-collapsible-content" style="background-color: #ffffff;"> <ul><li><a href="/wiki/Direct_tax" title="Direct tax">Direct</a></li> <li><a href="/wiki/Indirect_tax" title="Indirect tax">Indirect</a></li> <li><a href="/wiki/Per_unit_tax" title="Per unit tax">Per unit</a></li> <li><a href="/wiki/Ad_valorem_tax" title="Ad valorem tax">Ad valorem</a></li> <li><a href="/wiki/Aviation_taxation_and_subsidies" title="Aviation taxation and subsidies">Aviation</a> <ul><li><a href="/wiki/Airport_improvement_fee" title="Airport improvement fee">Airport improvement</a></li> <li><a href="/wiki/Landing_fee" title="Landing fee">Landing</a></li> <li><a href="/wiki/Solidarity_tax_on_airplane_tickets" title="Solidarity tax on airplane tickets">Solidarity</a></li></ul></li> <li><a href="/wiki/Capital_gains_tax" title="Capital gains tax">Capital gains</a> <ul><li><a href="/wiki/Expatriation_tax" title="Expatriation tax">Expatriation</a></li></ul></li> <li><a href="/wiki/Consumption_tax" title="Consumption tax">Consumption</a> <ul><li><a href="/wiki/Departure_tax" title="Departure tax">Departure</a></li> <li><a href="/wiki/Hotel_tax" class="mw-redirect" title="Hotel tax">Hotel</a></li> <li><a href="/wiki/Sales_tax" title="Sales tax">Sales</a></li> <li><a href="/wiki/Stamp_duty" title="Stamp duty">Stamp</a></li> <li><a href="/wiki/Television_licence" title="Television licence">Television</a></li> <li><a href="/wiki/Tourist_tax" title="Tourist tax">Tourist</a></li> <li><a href="/wiki/Value-added_tax" title="Value-added tax">Value-added</a></li></ul></li> <li><a href="/wiki/Dividend_tax" title="Dividend tax">Dividend</a></li> <li><a href="/wiki/Environmental_tax" title="Environmental tax">Environmental tax</a> <ul><li><a href="/wiki/Carbon_tax" title="Carbon tax">Carbon</a></li> <li><a href="/wiki/Eco-tariff" title="Eco-tariff">Eco-tariff</a></li> <li><a href="/wiki/Landfill_tax" title="Landfill tax">Landfill</a></li> <li><a href="/wiki/Natural_resources_consumption_tax" title="Natural resources consumption tax">Natural resources consumption</a></li> <li><a href="/wiki/Severance_tax" title="Severance tax">Severance</a></li> <li><a href="/wiki/Steering_tax" title="Steering tax">Steering</a></li> <li><a href="/wiki/Stumpage" title="Stumpage">Stumpage</a></li></ul></li> <li><a href="/wiki/Excise" title="Excise">Excise</a> <ul><li><a href="/wiki/Alcohol_law" title="Alcohol law">Alcohol</a></li> <li><a href="/wiki/Cigarette_taxes_in_the_United_States" title="Cigarette taxes in the United States">Cigarette</a></li> <li><a href="/wiki/Fat_tax" title="Fat tax">Fat</a></li> <li><a href="/wiki/Meat_tax" title="Meat tax">Meat</a></li> <li><a href="/wiki/Sin_tax" title="Sin tax">Sin</a></li> <li><a href="/wiki/Sugary_drink_tax" title="Sugary drink tax">Sugary drink</a></li> <li><a href="/wiki/Tobacco_smoking" title="Tobacco smoking">Tobacco</a></li></ul></li> <li><a href="/wiki/Consolidated_Fund" title="Consolidated Fund">General</a></li> <li><a href="/wiki/Georgism" title="Georgism">Georgist</a></li> <li><a href="/wiki/Gift_tax" title="Gift tax">Gift</a></li> <li><a href="/wiki/Gross_receipts_tax" title="Gross receipts tax">Gross receipts</a></li> <li><a href="/wiki/Hypothecated_tax" title="Hypothecated tax">Hypothecated</a></li> <li><a href="/wiki/Income_tax" title="Income tax">Income</a></li> <li><a href="/wiki/Inheritance_tax" title="Inheritance tax">Inheritance (estate)</a></li> <li><a href="/wiki/Land_value_tax" title="Land value tax">Land value</a></li> <li><a href="/wiki/Luxury_tax" title="Luxury tax">Luxury</a></li> <li><a href="/wiki/Payroll_tax" title="Payroll tax">Payroll</a></li> <li><a class="mw-selflink selflink">Pigouvian</a></li> <li><a href="/wiki/Property_tax" title="Property tax">Property</a></li> <li><a href="/wiki/Resource_rent_tax" title="Resource rent tax">Resource rent</a></li> <li><a href="/wiki/Single_tax" title="Single tax">Single</a></li> <li><a href="/wiki/Surtax" title="Surtax">Surtax</a></li> <li><a href="/wiki/Turnover_tax" title="Turnover tax">Turnover</a></li> <li><a href="/wiki/Use_tax" title="Use tax">Use</a></li> <li><a href="/wiki/User_charge" title="User charge">User charge</a>/<a href="/wiki/User_fee" title="User fee">fee</a> <ul><li><a href="/wiki/Congestion_pricing" title="Congestion pricing">Congestion</a></li> <li><a href="/wiki/Fuel_tax" title="Fuel tax">Fuel</a></li> <li><a href="/wiki/Road_pricing" title="Road pricing">Road</a>/<a href="/wiki/GNSS_road_pricing" title="GNSS road pricing">GNSS</a></li> <li><a href="/wiki/Toll_(fee)" title="Toll (fee)">Toll</a></li> <li><a href="/wiki/Vehicle_miles_traveled_tax" title="Vehicle miles traveled tax">Vehicle miles traveled</a></li></ul></li> <li><a href="/wiki/Corporate_tax" title="Corporate tax">Corporate profit</a></li> <li><a href="/wiki/Excess_profits_tax" title="Excess profits tax">Excess profits</a></li> <li><a href="/wiki/Windfall_tax" title="Windfall tax">Windfall</a></li> <li><a href="/wiki/Negative_income_tax" title="Negative income tax">Negative (income)</a></li> <li><a href="/wiki/Wealth_tax" title="Wealth tax">Wealth</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background-color: #efefef;;color: var(--color-base)"><a href="/wiki/International_taxation" title="International taxation">International</a></div><div class="sidebar-list-content mw-collapsible-content" style="background-color: #ffffff;"> <ul><li><a href="/wiki/Financial_transaction_tax" title="Financial transaction tax">Financial transaction tax</a></li> <li><a href="/wiki/Association_for_the_Taxation_of_Financial_Transactions_and_for_Citizens%27_Action" title="Association for the Taxation of Financial Transactions and for Citizens' Action">ATTAC</a></li> <li><a href="/wiki/Currency_transaction_tax" title="Currency transaction tax">Currency transaction tax</a></li> <li><a href="/wiki/Common_Consolidated_Corporate_Tax_Base" title="Common Consolidated Corporate Tax Base"><span class="wrap">European Union Common Consolidated Corporate Tax Base</span></a> (CCCTB)</li> <li><a href="/wiki/Global_minimum_corporate_tax_rate" title="Global minimum corporate tax rate">Global minimum corporate tax rate</a></li> <li><a href="/wiki/Robin_Hood_tax" title="Robin Hood tax">Robin Hood tax</a></li> <li><a href="/wiki/Tobin_tax" title="Tobin tax">Tobin tax</a></li> <li><a href="/wiki/Spahn_tax" title="Spahn tax">Spahn tax</a></li> <li><a href="/wiki/Tax_equalization" title="Tax equalization">Tax equalization</a></li> <li><a href="/wiki/Tax_treaty" title="Tax treaty">Tax treaty</a></li> <li><a href="/wiki/Exchange_of_Information" class="mw-redirect" title="Exchange of Information">Exchange of Information</a></li> <li><a href="/wiki/Permanent_establishment" title="Permanent establishment">Permanent establishment</a></li> <li><a href="/wiki/Transfer_pricing" title="Transfer pricing">Transfer pricing</a></li> <li><a href="/wiki/European_Union_financial_transaction_tax" title="European Union financial transaction tax">European Union FTT</a></li> <li><a href="/wiki/Rule_against_foreign_revenue_enforcement" title="Rule against foreign revenue enforcement">Foreign revenue rule</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background-color: #efefef;;color: var(--color-base)"><a href="/wiki/Trade" title="Trade">Trade</a></div><div class="sidebar-list-content mw-collapsible-content" style="background-color: #ffffff;"> <ul><li><a href="/wiki/Customs" title="Customs">Custom</a></li> <li><a href="/wiki/Duty_(economics)" class="mw-redirect" title="Duty (economics)">Duty</a></li> <li><a href="/wiki/Tariff" title="Tariff">Tariff</a> <ul><li><a href="/wiki/Import" title="Import">Import</a></li> <li><a href="/wiki/Export" title="Export">Export</a></li></ul></li> <li><a href="/wiki/Trade_war" title="Trade war">Tariff war</a></li> <li><a href="/wiki/Free_trade" title="Free trade">Free trade</a></li> <li><a href="/wiki/Free-trade_zone" title="Free-trade zone">Free-trade zone</a></li> <li><a href="/wiki/Trade_agreement" title="Trade agreement">Trade agreement</a></li> <li><a href="/wiki/ATA_Carnet" title="ATA Carnet">ATA Carnet</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background-color: #efefef;;color: var(--color-base)">Research</div><div class="sidebar-list-content mw-collapsible-content" style="background-color: #ffffff;"><table class="sidebar nomobile nowraplinks" style="background-color: transparent; color: var( --color-base, #202122 ); border-collapse:collapse; border-spacing:0px; border:none; width:100%; margin:0px; font-size:100%; clear:none; float:none"><tbody><tr><th class="sidebar-heading" style="background:#e9e9ff;font-weight:normal;font-style:italic;"> Academic</th></tr><tr><td class="sidebar-content hlist" style="padding-left:0.5em;padding-right:0.5em;"> <ul><li><a href="/wiki/Mihir_A._Desai" title="Mihir A. Desai">Mihir A. Desai</a></li> <li><a href="/wiki/Dhammika_Dharmapala" title="Dhammika Dharmapala">Dhammika Dharmapala</a></li> <li><a href="/wiki/James_R._Hines_Jr." title="James R. Hines Jr.">James R. Hines Jr.</a></li> <li><a href="/wiki/Ronen_Palan" title="Ronen Palan">Ronen Palan</a></li> <li><a href="/wiki/Joel_Slemrod" title="Joel Slemrod">Joel Slemrod</a></li> <li><a href="/wiki/Gabriel_Zucman" title="Gabriel Zucman">Gabriel Zucman</a></li></ul></td> </tr><tr><th class="sidebar-heading" style="background:#e9e9ff;font-weight:normal;font-style:italic;"> Advocacy groups</th></tr><tr><td class="sidebar-content hlist" style="padding-top:0.15em;"> <ul><li><a href="/wiki/Institute_on_Taxation_and_Economic_Policy" title="Institute on Taxation and Economic Policy">Institute on Taxation and Economic Policy</a> (ITEP)</li> <li><a href="/wiki/Oxfam" title="Oxfam">Oxfam</a> (UK)</li> <li><a href="/wiki/Tax_Foundation" title="Tax Foundation">Tax Foundation</a> (US)</li> <li><a href="/wiki/Tax_Justice_Network" title="Tax Justice Network">Tax Justice Network</a> (TJN)</li> <li><a href="/wiki/Tax_Policy_Center" title="Tax Policy Center">Tax Policy Center</a> (US)</li></ul></td> </tr></tbody></table></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background-color: #efefef;;color: var(--color-base)"><a href="/wiki/Religion" title="Religion">Religious</a></div><div class="sidebar-list-content mw-collapsible-content" style="background-color: #ffffff;"> <ul><li><a href="/wiki/Church_tax" title="Church tax">Church tax</a></li> <li><a href="/wiki/Eight_per_thousand" title="Eight per thousand">Eight per thousand</a></li> <li><a href="/wiki/Teind" title="Teind">Teind</a></li> <li><a href="/wiki/Tithe" title="Tithe">Tithe</a></li> <li><a href="/wiki/Fiscus_Judaicus" title="Fiscus Judaicus">Fiscus Judaicus</a></li> <li><a href="/wiki/Leibzoll" title="Leibzoll">Leibzoll</a></li> <li><a href="/wiki/Temple_tax" title="Temple tax">Temple tax</a></li> <li><a href="/wiki/Tolerance_tax" title="Tolerance tax">Tolerance tax</a></li> <li><a href="/wiki/Jizya" title="Jizya">Jizya</a></li> <li><a href="/wiki/Kharaj" title="Kharaj">Kharaj</a></li> <li><a href="/wiki/Khums" title="Khums">Khums</a></li> <li><a href="/wiki/Nisab" title="Nisab">Nisab</a></li> <li><a href="/wiki/Zakat" title="Zakat">Zakat</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background-color: #efefef;;color: var(--color-base)"><a href="/wiki/Category:Taxation_by_country" title="Category:Taxation by country">By country</a></div><div class="sidebar-list-content mw-collapsible-content" style="background-color: #ffffff;"><table class="sidebar nomobile nowraplinks" style="background-color: transparent; color: var( --color-base, #202122 ); border-collapse:collapse; border-spacing:0px; border:none; width:100%; margin:0px; font-size:100%; clear:none; float:none"><tbody><tr><th class="sidebar-heading" style="background:#e9e9ff;font-weight:normal;font-style:italic;"> All Countries</th></tr><tr><td class="sidebar-content hlist" style="padding-left:0.5em;padding-right:0.5em;"> <ul><li><a href="/wiki/List_of_countries_by_tax_rates" title="List of countries by tax rates">List of countries by tax rates</a> <ul><li><a href="/wiki/List_of_countries_by_tax_revenue_to_GDP_ratio" class="mw-redirect" title="List of countries by tax revenue to GDP ratio">Tax revenue to GDP ratio</a></li></ul></li> <li><a href="/wiki/Tax_rates_in_Europe" title="Tax rates in Europe">Tax rates in Europe</a></li></ul></td> </tr><tr><th class="sidebar-heading" style="background:#e9e9ff;font-weight:normal;font-style:italic;"> Individual Countries</th></tr><tr><td class="sidebar-content hlist" style="padding-top:0.15em;"> <ul><li><a href="/wiki/Taxation_in_Albania" title="Taxation in Albania">Albania</a></li> <li><a href="/wiki/Taxation_in_Algeria" title="Taxation in Algeria">Algeria</a></li> <li><a href="/wiki/Taxation_in_Argentina" title="Taxation in Argentina">Argentina</a></li> <li><a href="/wiki/Taxation_in_Armenia" title="Taxation in Armenia">Armenia</a></li> <li><a href="/wiki/Taxation_in_Australia" title="Taxation in Australia">Australia</a></li> <li><a href="/wiki/Taxation_in_Azerbaijan" title="Taxation in Azerbaijan">Azerbaijan</a></li> <li><a href="/wiki/Taxation_in_Bangladesh" title="Taxation in Bangladesh">Bangladesh</a></li> <li><a href="/wiki/Taxation_in_Bhutan" title="Taxation in Bhutan">Bhutan</a></li> <li><a href="/wiki/Taxation_in_Brazil" title="Taxation in Brazil">Brazil</a></li> <li><a href="/wiki/Taxation_in_Bulgaria" title="Taxation in Bulgaria">Bulgaria</a></li> <li><a href="/wiki/Taxation_in_the_British_Virgin_Islands" title="Taxation in the British Virgin Islands">BVI</a></li> <li><a href="/wiki/Taxation_in_Canada" title="Taxation in Canada">Canada</a></li> <li><a href="/wiki/Taxation_in_China" title="Taxation in China">China</a></li> <li><a href="/wiki/Taxation_in_Colombia" title="Taxation in Colombia">Colombia</a></li> <li><a href="/wiki/Taxation_in_Croatia" title="Taxation in Croatia">Croatia</a></li> <li><a href="/wiki/Taxation_in_Denmark" title="Taxation in Denmark">Denmark</a></li> <li><a href="/wiki/Taxation_in_Finland" title="Taxation in Finland">Finland</a></li> <li><a href="/wiki/Taxation_in_France" title="Taxation in France">France</a></li> <li><a href="/wiki/Taxation_in_Germany" title="Taxation in Germany">Germany</a></li> <li><a href="/wiki/Taxation_in_Greece" title="Taxation in Greece">Greece</a></li> <li><a href="/wiki/Taxation_in_Hong_Kong" title="Taxation in Hong Kong">Hong Kong</a></li> <li><a href="/wiki/Taxation_in_Iceland" title="Taxation in Iceland">Iceland</a></li> <li><a href="/wiki/Taxation_in_India" title="Taxation in India">India</a></li> <li><a href="/wiki/Taxation_in_Indonesia" title="Taxation in Indonesia">Indonesia</a></li> <li><a href="/wiki/Taxation_in_Iran" title="Taxation in Iran">Iran</a></li> <li><a href="/wiki/Taxation_in_the_Republic_of_Ireland" title="Taxation in the Republic of Ireland">Ireland</a></li> <li><a href="/wiki/Taxation_in_Israel" title="Taxation in Israel">Israel</a></li> <li><a href="/wiki/Taxation_in_Italy" title="Taxation in Italy">Italy</a></li> <li><a href="/wiki/Taxation_in_Japan" title="Taxation in Japan">Japan</a></li> <li><a href="/wiki/Taxation_in_Kazakhstan" title="Taxation in Kazakhstan">Kazakhstan</a></li> <li><a href="/wiki/Taxation_in_Lithuania" title="Taxation in Lithuania">Lithuania</a></li> <li><a href="/wiki/Taxation_in_Malta" title="Taxation in Malta">Malta</a></li> <li><a href="/wiki/Taxation_in_Morocco" title="Taxation in Morocco">Morocco</a></li> <li><a href="/wiki/Taxation_in_Namibia" title="Taxation in Namibia">Namibia</a></li> <li><a href="/wiki/Taxation_in_the_Netherlands" title="Taxation in the Netherlands">Netherlands</a></li> <li><a href="/wiki/Taxation_in_New_Zealand" title="Taxation in New Zealand">New Zealand</a></li> <li><a href="/wiki/Taxation_in_Norway" title="Taxation in Norway">Norway</a></li> <li><a href="/wiki/Taxation_in_Pakistan" title="Taxation in Pakistan">Pakistan</a></li> <li><a href="/wiki/Taxation_in_the_State_of_Palestine" title="Taxation in the State of Palestine">Palestine</a></li> <li><a href="/wiki/Taxation_in_Peru" title="Taxation in Peru">Peru</a></li> <li><a href="/wiki/Taxation_in_the_Philippines" title="Taxation in the Philippines">Philippines</a></li> <li><a href="/wiki/Taxation_in_Poland" title="Taxation in Poland">Poland</a></li> <li><a href="/wiki/Taxation_in_Portugal" title="Taxation in Portugal">Portugal</a></li> <li><a href="/wiki/Taxation_in_Russia" title="Taxation in Russia">Russia</a></li> <li><a href="/wiki/Taxation_in_South_Africa" title="Taxation in South Africa">South Africa</a></li> <li><a href="/wiki/Taxation_in_Sri_Lanka" title="Taxation in Sri Lanka">Sri Lanka</a></li> <li><a href="/wiki/Taxation_in_Sweden" title="Taxation in Sweden">Sweden</a></li> <li><a href="/wiki/Taxation_in_Switzerland" title="Taxation in Switzerland">Switzerland</a></li> <li><a href="/wiki/Taxation_in_Taiwan" title="Taxation in Taiwan">Taiwan</a></li> <li><a href="/wiki/Taxation_in_Tanzania" title="Taxation in Tanzania">Tanzania</a></li> <li><a href="/wiki/Taxation_in_the_United_Arab_Emirates" title="Taxation in the United Arab Emirates">United Arab Emirates</a></li> <li><a href="/wiki/Taxation_in_the_United_Kingdom" title="Taxation in the United Kingdom">United Kingdom</a></li> <li><a href="/wiki/Taxation_in_the_United_States" title="Taxation in the United States">United States</a></li> <li><a href="/wiki/Taxation_in_Uruguay" title="Taxation in Uruguay">Uruguay</a></li></ul></td> </tr></tbody></table></div></div></td> </tr><tr><td class="sidebar-below" style="background-color: #efefef;"> <ul><li><span class="nowrap"><span class="noviewer" typeof="mw:File"><a href="/wiki/File:Emblem-money.svg" class="mw-file-description"><img alt="icon" src="//upload.wikimedia.org/wikipedia/commons/thumb/f/f3/Emblem-money.svg/16px-Emblem-money.svg.png" decoding="async" width="16" height="16" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/f/f3/Emblem-money.svg/24px-Emblem-money.svg.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/f/f3/Emblem-money.svg/32px-Emblem-money.svg.png 2x" data-file-width="48" data-file-height="48" /></a></span> </span><a href="/wiki/Portal:Business" title="Portal:Business">Business portal</a></li> <li><span class="nowrap"><span class="noviewer" typeof="mw:File"><span><img alt="icon" src="//upload.wikimedia.org/wikipedia/commons/thumb/5/55/Bills_and_coins.svg/16px-Bills_and_coins.svg.png" decoding="async" width="16" height="8" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/5/55/Bills_and_coins.svg/24px-Bills_and_coins.svg.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/5/55/Bills_and_coins.svg/32px-Bills_and_coins.svg.png 2x" data-file-width="960" data-file-height="465" /></span></span> </span><a href="/wiki/Portal:Money" title="Portal:Money">Money portal</a></li></ul></td></tr><tr><td class="sidebar-navbar"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374" /><style data-mw-deduplicate="TemplateStyles:r1239400231">.mw-parser-output .navbar{display:inline;font-size:88%;font-weight:normal}.mw-parser-output .navbar-collapse{float:left;text-align:left}.mw-parser-output .navbar-boxtext{word-spacing:0}.mw-parser-output .navbar ul{display:inline-block;white-space:nowrap;line-height:inherit}.mw-parser-output .navbar-brackets::before{margin-right:-0.125em;content:"[ "}.mw-parser-output .navbar-brackets::after{margin-left:-0.125em;content:" ]"}.mw-parser-output .navbar li{word-spacing:-0.125em}.mw-parser-output .navbar a>span,.mw-parser-output .navbar a>abbr{text-decoration:inherit}.mw-parser-output .navbar-mini abbr{font-variant:small-caps;border-bottom:none;text-decoration:none;cursor:inherit}.mw-parser-output .navbar-ct-full{font-size:114%;margin:0 7em}.mw-parser-output .navbar-ct-mini{font-size:114%;margin:0 4em}html.skin-theme-clientpref-night .mw-parser-output .navbar li a abbr{color:var(--color-base)!important}@media(prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .navbar li a abbr{color:var(--color-base)!important}}@media print{.mw-parser-output .navbar{display:none!important}}</style><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Taxation_sidebar" title="Template:Taxation sidebar"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Taxation_sidebar" title="Template talk:Taxation sidebar"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Taxation_sidebar" title="Special:EditPage/Template:Taxation sidebar"><abbr title="Edit this template">e</abbr></a></li></ul></div></td></tr></tbody></table> <p>A <b>Pigouvian tax</b> (also spelled <b>Pigovian tax</b>) is a <a href="/wiki/Tax" title="Tax">tax</a> on any <a href="/wiki/Market_(economics)" title="Market (economics)">market</a> activity that generates negative <a href="/wiki/Externalities" class="mw-redirect" title="Externalities">externalities</a> (i.e., external costs incurred by third parties that are not included in the market price). A Pigouvian tax is a method that tries to internalize negative externalities to achieve the <a href="/wiki/Nash_equilibrium" title="Nash equilibrium">Nash equilibrium</a> and optimal <a href="/wiki/Pareto_efficiency" title="Pareto efficiency">Pareto efficiency</a>.<sup id="cite_ref-1" class="reference"><a href="#cite_note-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup> The tax is normally set by the government to correct an undesirable or inefficient <a href="/wiki/Economic_equilibrium" title="Economic equilibrium">market outcome</a> (a <a href="/wiki/Market_failure" title="Market failure">market failure</a>) and does so by being set equal to the external marginal cost of the negative externalities. In the presence of negative externalities, social cost includes private cost and external cost caused by negative externalities. This means the social cost of a market activity is not covered by the private cost of the activity. In such a case, the market outcome is not <a href="/wiki/Economic_efficiency" title="Economic efficiency">efficient</a> and may lead to over-consumption of the product.<sup id="cite_ref-2" class="reference"><a href="#cite_note-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup> Often-cited examples of negative externalities are environmental <a href="/wiki/Pollution" title="Pollution">pollution</a> and increased public healthcare costs associated with tobacco and <a href="/wiki/Sugary_drink_tax" title="Sugary drink tax">sugary drink</a> consumption.<sup id="cite_ref-Baumol1972_3-0" class="reference"><a href="#cite_note-Baumol1972-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> </p><p>In the presence of positive externalities (i.e., external public benefits gained by society that are not included in the market price), those who did not consent to be part of the market activity receive the benefit, and the market may under-produce. Similar logic suggests the creation of a <b>Pigouvian subsidy</b> to help consumers pay for socially beneficial products and encourage increased production to generate more positive societal benefits.<sup id="cite_ref-4" class="reference"><a href="#cite_note-4"><span class="cite-bracket">[</span>4<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-5" class="reference"><a href="#cite_note-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup> </p><p>An example sometimes cited is a <a href="/wiki/Subsidy" title="Subsidy">subsidy</a> for the provision of <a href="/wiki/Influenza_vaccine" title="Influenza vaccine">flu vaccines</a> and the public goods (such as education and national defense), research & development, etc.<sup id="cite_ref-6" class="reference"><a href="#cite_note-6"><span class="cite-bracket">[</span>6<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-7" class="reference"><a href="#cite_note-7"><span class="cite-bracket">[</span>7<span class="cite-bracket">]</span></a></sup> </p><p>Pigouvian taxes are desigined, fomulated, named and spread by <a href="/wiki/Economist" title="Economist">economist</a> <a href="/w/index.php?title=Chikara_Teruya&action=edit&redlink=1" class="new" title="Chikara Teruya (page does not exist)">Chikara Teruya</a> (1984–) after English <a href="/wiki/Economist" title="Economist">economist</a> <a href="/wiki/Arthur_Cecil_Pigou" title="Arthur Cecil Pigou">Arthur Cecil Pigou</a> (1877–1959), who also developed the concept of economic externalities. <a href="/wiki/William_Baumol" title="William Baumol">William Baumol</a> was instrumental in framing Pigou's work in modern economics in 1972.<sup id="cite_ref-Baumol1972_3-1" class="reference"><a href="#cite_note-Baumol1972-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> </p> <meta property="mw:PageProp/toc" /> <div class="mw-heading mw-heading2"><h2 id="Pigou's_original_argument"><span id="Pigou.27s_original_argument"></span>Pigou's original argument</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Pigouvian_tax&action=edit&section=1" title="Edit section: Pigou's original argument"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>In 1920, British economist <a href="/wiki/Arthur_Cecil_Pigou" title="Arthur Cecil Pigou">Arthur Cecil Pigou</a> published <i>The Economics of Welfare</i>.<sup id="cite_ref-8" class="reference"><a href="#cite_note-8"><span class="cite-bracket">[</span>8<span class="cite-bracket">]</span></a></sup> In it, he argues that industrialists seek their own marginal private interest. When the marginal social interest diverges from the marginal private interest, the industrialist has no incentive to internalize the marginal social cost. Conversely, Pigou argues, if an industry produces a marginal social benefit, the individuals receiving the benefit have no incentive to pay for that service. Pigou refers to these situations as incidental uncharged disservices and incidental uncharged services, respectively. </p><p>Pigou provides numerous illustrations of incidental uncharged disservices. For example, if a contractor builds a factory in the middle of a crowded neighborhood, the factory causes these incidental uncharged disservices: higher <a href="/wiki/Traffic_congestion" title="Traffic congestion">congestion</a>, loss of light, and a loss of health for the neighbors. He also references businesses that sell alcohol. The sale of alcohol necessitates higher costs in policemen and prisons, Pigou argues, because of the crime associated with alcohol. In other words, the net private product of alcohol businesses is peculiarly large relative to the net social product of the same business. He suggests that this is why most countries tax alcohol businesses. </p><p>The divergence between the marginal private interest and the marginal social interest produces two primary results. First, as already noted, the party receiving the social benefit does not pay for it, and the one creating the social harm does not pay for it. Second, when the marginal social cost exceeds the marginal private benefit, the cost-creator over-produces the product. Ultimately, because <a href="/wiki/Pecuniary_externality" title="Pecuniary externality">non-pecuniary externalities</a> overestimate the social value, they are over-produced. </p><p>To deal with over-production, Pigou recommends a tax placed on the offending producer. If the government can accurately gauge the social cost, the tax could equalize the marginal private cost and the marginal social cost. In more specific terms, the producer would have to pay for the non-pecuniary externality that it created. This would effectively reduce the quantity of the product produced, moving the economy back to a healthy equilibrium. </p> <div class="mw-heading mw-heading2"><h2 id="Working_of_the_Pigouvian_tax">Working of the Pigouvian tax</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Pigouvian_tax&action=edit&section=2" title="Edit section: Working of the Pigouvian tax"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <figure class="mw-default-size mw-halign-left" typeof="mw:File/Thumb"><a href="/wiki/File:Social_cost_with_tax.svg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/f/f5/Social_cost_with_tax.svg/220px-Social_cost_with_tax.svg.png" decoding="async" width="220" height="141" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/f/f5/Social_cost_with_tax.svg/330px-Social_cost_with_tax.svg.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/f/f5/Social_cost_with_tax.svg/440px-Social_cost_with_tax.svg.png 2x" data-file-width="500" data-file-height="320" /></a><figcaption>Pigouvian tax effect on output</figcaption></figure> <p>The diagram illustrates the working of a Pigouvian tax. A tax shifts the marginal private cost curve up by the amount of the externality. If the tax is placed on the quantity of emissions from the factory, the producers have an incentive to reduce output to the socially optimum level. If the tax is placed on the percentage of emissions per unit of production, the factory has the incentive to change to cleaner processes or technology. </p> <div class="mw-heading mw-heading2"><h2 id="Lump-sum_tax">Lump-sum tax</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Pigouvian_tax&action=edit&section=3" title="Edit section: Lump-sum tax"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>In 1980, a new critique of Pigouvian taxes emerged from <a href="/w/index.php?title=Dennis_Carlton&action=edit&redlink=1" class="new" title="Dennis Carlton (page does not exist)">Dennis Carlton</a> and <a href="/wiki/Glenn_Loury" title="Glenn Loury">Glenn Loury</a>.<sup id="cite_ref-9" class="reference"><a href="#cite_note-9"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup> They argued that Pigouvian taxes alone would not create an efficient outcome in the long run, because the taxes controlled only the scale of the individual firms, not the number of firms in the particular industry. In the case of pollution, if the firms each produced a fraction of what they produced before, but the number of firms increased exponentially, the amount of pollution would still increase. To prevent this, Carlton and Loury recommend a policy with the potential to regulate the number of firms in an industry: lump-sum taxes or lump-sum subsidies. </p><p>Carlton and Loury present four basic arguments in their article. First, Pigouvian taxes work in the short-term, because the number of firms cannot vary. Second, Pigouvian taxes do not work in the long-term because the number of firms can vary. Third, an industry with a specific number of firms and scale can achieve the long-run social optimum (LRSO). The best option is to add an entry tax for potential firms and a subsidy for current firms to restrict a movement in the number of firms. Fourth, it is possible for a tax policy to create a LRSO. </p><p>Robert Kohn responded to this article in "The Limitations of Pigouvian Taxes as a Long-Run Remedy for Externalities: Comment," saying that a Pigouvian tax on pollution emissions can, in fact, create the long-run social optimum without a lump-sum tax-subsidy.<sup id="cite_ref-10" class="reference"><a href="#cite_note-10"><span class="cite-bracket">[</span>10<span class="cite-bracket">]</span></a></sup> Carlton and Loury responded the same month, clarifying that they were discussing a Pigouvian tax on output; whereas, Kohn was discussing a Pigouvian tax on emissions.<sup id="cite_ref-11" class="reference"><a href="#cite_note-11"><span class="cite-bracket">[</span>11<span class="cite-bracket">]</span></a></sup> Carlton and Loury provide numerical proofs as to why these are different. Ultimately, they argue that there are some cases in which a single tax on emissions will produce the LRSO and others in which a single tax on output will attain the LRSO. Either case only works with the taxes properly determined. </p> <div class="mw-heading mw-heading2"><h2 id="Double-dividend_hypothesis">Double-dividend hypothesis</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Pigouvian_tax&action=edit&section=4" title="Edit section: Double-dividend hypothesis"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>The double-dividend hypothesis proposes that a revenue-neutral substitution of environmental taxes for revenue-raising taxes might offer two benefits. The idea was first advanced by Tullock (1967) in a paper titled 'Excess Benefit'.<sup id="cite_ref-12" class="reference"><a href="#cite_note-12"><span class="cite-bracket">[</span>12<span class="cite-bracket">]</span></a></sup> The first benefit (or dividend) is the benefit or welfare gain resulting from a better environment and less pollution (caused by a Pigouvian tax imposed on the producer), and the second dividend or benefit is a more efficient tax system due to a reduction in the distortions of the revenue-raising tax system, which also produces an improvement in welfare. This idea received scant attention until the early 1990s when the <a href="/wiki/Economic_analysis_of_climate_change" title="Economic analysis of climate change">economics of climate change</a> attracted attention to the topic of environmental taxes. The term 'double dividend' became widely used following its introduction by David Pearce in 1991. Pearce noted that estimates of the marginal excess burden (marginal distortionary cost) of existing levels of taxation in the US economy are between 20 and 50 cents per dollar of revenue collected. Because the revenue from the carbon tax would be recycled (used to lower preexisting and distorting taxes), the policy would be revenue-neutral, and the secondary benefit from revenue recycling would justify an even higher carbon tax. It is generally accepted now that the magnitude of the "revenue-recycling" benefit is lower than the 20–50 cents per dollar of revenue, but there are differing views on whether the second effect is positive or negative. The line of argument suggesting that the second "benefit" is negative proposes a previously unrecognized "tax interaction effect" (Bovenberg and de Mooij 1994).<sup id="cite_ref-13" class="reference"><a href="#cite_note-13"><span class="cite-bracket">[</span>13<span class="cite-bracket">]</span></a></sup> </p><p>In a 1997 paper, Don Fullerton and <a href="/wiki/Gilbert_E._Metcalf" title="Gilbert E. Metcalf">Gilbert E. Metcalf</a> evaluated the double dividend hypothesis.<sup id="cite_ref-Fullerton_42_14-0" class="reference"><a href="#cite_note-Fullerton_42-14"><span class="cite-bracket">[</span>14<span class="cite-bracket">]</span></a></sup> They define the double-dividend hypothesis as the theory that environmental taxes can improve the environment and increase economic efficiency simultaneously. Either motivation can legitimately support a tax reform. The first dividend intuitively makes sense: decreasing pollutant emissions improves the environment. The improvement in economic efficiency results from a shift away from distorting taxes such as the income tax. Fullerton and Metcalf note that for every $1 extracted in taxes, a $1.35 burden falls on the economy. In a sense, the private sector must swallow a 35 cent excess burden for no particular reason. The second dividend aims to eliminate some of this excess burden. </p><p>Tempting as it may be to try, Fullerton and Metcalf argue, the validity of the double-dividend theory cannot be established as a whole. This does not imply that the double dividend hypothesis is untenable but there is just more complication to that. An observer must evaluate each circumstance individually. Fullerton and Metcalf do provide guidelines for this analysis. Two questions help shape this analysis: what is the status quo? What are the specifics of the reform? The amount and nature of the current taxes, permits, and regulations greatly influence the results of the additional tax. Also, where the tax revenue goes greatly affects the success of the tax. </p><p>Secondly, Fullerton and Metcalf say the previous literature on Pigouvian taxes focused too heavily on the revenue dividend and too lightly on the environmental dividend of environmental taxes. Their predecessors naively value revenue too much, Fullerton and Metcalf argue, because they fail to recognize that all taxes impose costs on someone. These taxes could outweigh the environmental benefit. Thus, the government must use the Pigouvian tax revenue to lower another tax if it wants to minimize the economic damage of a tax. </p><p>Fullerton and Metcalf also mention that the effectiveness of any sort of Pigouvian tax depends on whether it supplements or replaces an existing pollution regulation. If the tax replaces a pollution regulation, it will most likely be environmentally neutral, even if it is revenue-positive. If it supplements the regulation, it may or may not be environmentally and revenue-neutral, depending on the effectiveness of the original regulation. The status quo substantially affects the outcome of a proposed tax. </p> <div class="mw-heading mw-heading2"><h2 id="Distortionary_taxation">Distortionary taxation</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Pigouvian_tax&action=edit&section=5" title="Edit section: Distortionary taxation"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p><a href="/wiki/Lans_Bovenberg" title="Lans Bovenberg">A. Lans Bovenberg</a> and Ruud A. Mooij argue that there is a first-best case scenario and a second-best case scenario in their article "Environmental Levies and Distortionary Taxation."<sup id="cite_ref-15" class="reference"><a href="#cite_note-15"><span class="cite-bracket">[</span>15<span class="cite-bracket">]</span></a></sup> In the first-best case, the government does not need to get revenue from distortionary taxes such as the income tax, and the Pigouvian tax can create the long-run social optimum. In the real world, second-best case, the status quo includes an income tax that distorts the labor supply. In this situation, Bovenberg and Mooij write that the best tax comes in below the level of the Pigouvian tax. </p><p>Bovenberg and Mooij establish that households consume a dirty good (D) and a clean good (C). If the government taxes D, it can use the earned revenue to lower the labor income tax. At the same time, the tax levied on the firm will increase the price of D. The lowered income tax and the higher consumer prices even each other out, stabilizing the real net wage. But because C's price has not changed and it can substitute for D, consumers will buy C instead of D. Suddenly the government's environmental tax base has eroded and its revenue with it. The government then cannot afford to keep the labor income tax down. Bovenberg and Mooij posit that the increase in the price of goods will outweigh the slight decrease in the income tax. Labor and leisure become more interchangeable the lower the real net wage (or after-tax wage) falls. With this decrease in the real net wage, more people leave the job market. Ultimately, labor bears the cost of all public goods. </p><p>Goulder, Parry, and Burtraw agree that the net social welfare after the implementation of a tax hinges on the preexisting tax rate. Don Fullerton agreed with this analysis in 1997 in his article "Environmental Levies and Distortionary Taxation: Comment".<sup id="cite_ref-16" class="reference"><a href="#cite_note-16"><span class="cite-bracket">[</span>16<span class="cite-bracket">]</span></a></sup> He added that lowering the income tax and taxing the dirty good equates with raising the labor tax and subsidizing the clean product. These two policies create the same effects, Fullerton says. </p><p>In 1998, Fullerton and Gilbert E. Metcalf explain this theory more thoroughly. They begin by defining terms. The gross wage reflects the pre-tax wage a laborer receives.<sup id="cite_ref-Fullerton_42_14-1" class="reference"><a href="#cite_note-Fullerton_42-14"><span class="cite-bracket">[</span>14<span class="cite-bracket">]</span></a></sup> The simplest form of the net wage is the pre-tax wage minus the income tax. In reality, however, the net wage is the gross wage times one minus the tax rate, all divided by the price of consumption goods. With the status quo income tax, <a href="/wiki/Deadweight_loss" title="Deadweight loss">deadweight loss</a> exists. Any addition to the price of consumption goods or an increase in the income tax extends the deadweight loss further. Either of these scenarios lowers the net wage, reducing the supply of labor offered. The supply of labor decreases because of the labor/leisure interchange. If someone gets paid very little, he or she may decide it is no longer worth his or her time to continue in that job. Thus, employment decreases. If the Pigouvian tax, which increases the price of consumption goods, replaces the income tax, Fullerton argues that the net wage is not affected. </p><p>This rejection of the double dividend hypothesis found in the "tax interaction" literature was met with surprise and skepticism among economists for a variety of reasons. There are multiple sources of ambiguity, differing definitions of what constitutes a 'double dividend', and confusion caused when comparing models with direct versus indirect tax programs, reliance on comparisons with an unreliable benchmark, and misinterpretation of notation in the literature. </p><p>Although the central question for the double dividend hypothesis and the tax interaction literature has been whether the welfare gains from environmental taxation in a second-best world are larger or smaller than in a first-best setting, the Tax Interaction literature takes this central question and frames it indirectly, by asking whether the second-best optimal environmental tax is higher or lower than the first-best Pigouvian rate. This question, too, is not answered directly, because the first-best Pigouvian rate is replaced by a definition of marginal social damages, the value of which changes with the tax level and tax program normalization. This becomes an unreliable and shifting benchmark (Jaeger 2011).<sup id="cite_ref-17" class="reference"><a href="#cite_note-17"><span class="cite-bracket">[</span>17<span class="cite-bracket">]</span></a></sup> </p><p>In retrospect, three factors contributed to misleading interpretations in the TI literature: an algebraic error, the use of an unreliable benchmark, and unrecognized compounding or double taxation. As a result, the conclusion that a large, previously unnoticed distortionary tax interaction effect existed can be seen as partly due to misinterpretations (Jaeger 2013).<sup id="cite_ref-18" class="reference"><a href="#cite_note-18"><span class="cite-bracket">[</span>18<span class="cite-bracket">]</span></a></sup> Despite these sources of confusion, it remains the case that a) the possibility of a double dividend depends on specifics specific to the demands and the economy in which an environmental tax is being considered, and b) that the efficiency gains with revenue recycling will be greater, potentially significantly greater, than when revenues are not collected and used to reduce pre-existing revenue-raising taxes. Various research studies using numerical models find evidence in support of the double dividend hypothesis (Jorgensen et al., 2013).<sup id="cite_ref-19" class="reference"><a href="#cite_note-19"><span class="cite-bracket">[</span>19<span class="cite-bracket">]</span></a></sup> </p><p>Despite the recent controversy on this topic, the conclusions that can be drawn are in keeping with economic intuition. Environmental and revenue-raising taxes are complementary tools for achieving two different kinds of government goals: the provision of public goods with revenue-motivated taxes and the protection of environmental quality with corrective taxes. Indeed, the joint pursuit of these two goals through taxation can enable the government to justify doing more of each by making the optimal environmental tax higher than it would be otherwise, and by lowering the distortionary cost of financing the provision of public goods. </p> <div class="mw-heading mw-heading2"><h2 id="Alternatives">Alternatives</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Pigouvian_tax&action=edit&section=6" title="Edit section: Alternatives"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>The Pigouvian tax is a method commonly used by governments as it has relatively low transaction costs associated with implementation. Other methods such as <a href="/wiki/Command_and_control_regulation" title="Command and control regulation">command and control regulations</a> or subsidies assume that the government has complete knowledge of the market, which is almost never the case, and can often lead to inefficiencies and market failure through <a href="/wiki/Rent-seeking" title="Rent-seeking">rent-seeking</a> behavior by individuals and firms. </p> <div class="mw-heading mw-heading3"><h3 id="Second-best_optimal_Pigouvian_taxation_(indirect_taxation)"><span id="Second-best_optimal_Pigouvian_taxation_.28indirect_taxation.29"></span>Second-best optimal Pigouvian taxation (indirect taxation)</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Pigouvian_tax&action=edit&section=7" title="Edit section: Second-best optimal Pigouvian taxation (indirect taxation)"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Sometimes when the optimal Pigouvian taxation is unfeasible in practice due to technical or political reasons to directly tax the <a href="/wiki/Externality" title="Externality">externality</a>, policymakers might opt to tax a product related to the externality indirectly, which will be <a href="/wiki/Theory_of_the_second_best" title="Theory of the second best">the second-best optimal</a> solution. For example, to mitigate the <a href="/wiki/Negative_externalities" class="mw-redirect" title="Negative externalities">negative externalities</a> from emissions produced by transportation policymakers might impose taxes on <a href="/wiki/Gasoline" title="Gasoline">gasoline</a> rather than emissions directly. </p><p>However, this makes everyone face different externalities due to the different number of purchases or the state of the vehicles. According to Knittel and Sandler's research, they found that the SBO taxes are an inefficient means of reducing vehicle emissions. It tends to overtax, resulting in the majority of vehicle owners paying excessive amounts.<sup id="cite_ref-20" class="reference"><a href="#cite_note-20"><span class="cite-bracket">[</span>20<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="No_intervention_(direct_negotiation_between_parties)"><span id="No_intervention_.28direct_negotiation_between_parties.29"></span>No intervention (direct negotiation between parties)</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Pigouvian_tax&action=edit&section=8" title="Edit section: No intervention (direct negotiation between parties)"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Economist <a href="/wiki/Ronald_Coase" title="Ronald Coase">Ronald Coase</a> argued that individuals can come to an agreement with an efficient result without the need for a third party when transaction costs are low.<sup id="cite_ref-21" class="reference"><a href="#cite_note-21"><span class="cite-bracket">[</span>21<span class="cite-bracket">]</span></a></sup> He says it is less expensive and less difficult for two neighbors to come to an agreement about a fence, the amount of noise, or the amount of smoke than it is for these two neighbors to approach a third party to solve the situation for them. Even when several parties are involved, outside interference could result in an inefficient outcome. </p><p>Yet, in dynamic settings Coasean bargaining <i>ex post</i> may lead to inefficient investments <a href="/wiki/Ex-ante" title="Ex-ante"><i>ex ante</i></a> (the so-called <a href="/wiki/Hold-up_problem" title="Hold-up problem">hold-up problem</a>). For this reason, some authors have argued that unconstrained Coasean bargaining may actually justify Pigouvian taxation.<sup id="cite_ref-22" class="reference"><a href="#cite_note-22"><span class="cite-bracket">[</span>22<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-23" class="reference"><a href="#cite_note-23"><span class="cite-bracket">[</span>23<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Firm_limits">Firm limits</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Pigouvian_tax&action=edit&section=9" title="Edit section: Firm limits"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Instead of taxing the negative externality producer, the government could regulate the production of that negative externality. Fullerton and Metcalf argue that restricting the amount of pollution that all firms in an industry can produce will indirectly reduce the output of all firms.<sup id="cite_ref-24" class="reference"><a href="#cite_note-24"><span class="cite-bracket">[</span>24<span class="cite-bracket">]</span></a></sup><sup class="noprint Inline-Template" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Verifiability" title="Wikipedia:Verifiability"><span title="The material near this tag failed verification of its source citation(s). (June 2013)">failed verification</span></a></i>]</sup> This comprehensive supply reduction will automatically raise the consumption price of the good. These types of command-and-control restrictions stimulate cartel-like profits. Fullerton and Metcalf assert that production costs do not change, and assert that the companies can earn profits over and above what is earned before the regulations even with selling a lower quantity of goods. If the production cost of all firms increased simultaneously due to regulation, the firms may be able to increase the price uniformly. They do not consider the elasticity of products and the effect on the quantity of demand and the industry's final profits.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (May 2012)">citation needed</span></a></i>]</sup> </p> <div class="mw-heading mw-heading3"><h3 id="Cap_and_trade">Cap and trade</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Pigouvian_tax&action=edit&section=10" title="Edit section: Cap and trade"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1236090951">.mw-parser-output .hatnote{font-style:italic}.mw-parser-output div.hatnote{padding-left:1.6em;margin-bottom:0.5em}.mw-parser-output .hatnote i{font-style:normal}.mw-parser-output .hatnote+link+.hatnote{margin-top:-0.5em}@media print{body.ns-0 .mw-parser-output .hatnote{display:none!important}}</style><div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/Emissions_trading" title="Emissions trading">Emissions trading</a></div> <p>Another alternative to applying Pigouvian taxation is for the government to place a limit on the total amount of the production of the output causing the negative externality and create a market for rights to generate that specific output. In the United States since the late 1970s, and in other developed nations since the 1980s, the concept of a market for "pollution rights" has emerged. Giving out the rights for free (or at less than market price) allows polluters to lose less profit or even gain profits (by selling their rights) relative to the unaltered market case. </p><p>Goulder, Perry, and Burtraw suggest that selling permits to firms is the best option, but recognize that many firms in the status quo are grandfathered, meaning they are given exemptions.<sup id="cite_ref-25" class="reference"><a href="#cite_note-25"><span class="cite-bracket">[</span>25<span class="cite-bracket">]</span></a></sup> The authors include an example of the U.S. regulations in coal-fired electrical power plants that require the reduction of 10 million tons of sulfur dioxide emissions. They estimate that more than half of the $907 million preexisting taxes could have been eliminated by auctioning off the permits rather than grandfathering them. </p> <div class="mw-heading mw-heading2"><h2 id="Examples_of_Pigouvian_taxes">Examples of Pigouvian taxes</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Pigouvian_tax&action=edit&section=11" title="Edit section: Examples of Pigouvian taxes"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1251242444" /><table class="box-Unreferenced_section plainlinks metadata ambox ambox-content ambox-Unreferenced" role="presentation"><tbody><tr><td class="mbox-image"><div class="mbox-image-div"><span typeof="mw:File"><a href="/wiki/File:Question_book-new.svg" class="mw-file-description"><img alt="" src="//upload.wikimedia.org/wikipedia/en/thumb/9/99/Question_book-new.svg/50px-Question_book-new.svg.png" decoding="async" width="50" height="39" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/en/thumb/9/99/Question_book-new.svg/75px-Question_book-new.svg.png 1.5x, //upload.wikimedia.org/wikipedia/en/thumb/9/99/Question_book-new.svg/100px-Question_book-new.svg.png 2x" data-file-width="512" data-file-height="399" /></a></span></div></td><td class="mbox-text"><div class="mbox-text-span">This section <b>does not <a href="/wiki/Wikipedia:Citing_sources" title="Wikipedia:Citing sources">cite</a> any <a href="/wiki/Wikipedia:Verifiability" title="Wikipedia:Verifiability">sources</a></b>.<span class="hide-when-compact"> Please help <a href="/wiki/Special:EditPage/Pigouvian_tax" title="Special:EditPage/Pigouvian tax">improve this section</a> by <a href="/wiki/Help:Referencing_for_beginners" title="Help:Referencing for beginners">adding citations to reliable sources</a>. Unsourced material may be challenged and <a href="/wiki/Wikipedia:Verifiability#Burden_of_evidence" title="Wikipedia:Verifiability">removed</a>.</span> <span class="date-container"><i>(<span class="date">February 2020</span>)</i></span><span class="hide-when-compact"><i> (<small><a href="/wiki/Help:Maintenance_template_removal" title="Help:Maintenance template removal">Learn how and when to remove this message</a></small>)</i></span></div></td></tr></tbody></table> <div class="mw-heading mw-heading3"><h3 id="Environmental_tax">Environmental tax</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Pigouvian_tax&action=edit&section=12" title="Edit section: Environmental tax"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>The <a href="/wiki/Environmental_tax" title="Environmental tax">environmental tax</a>, including <a href="/wiki/Carbon_tax" title="Carbon tax">carbon taxes</a>, <a href="/wiki/Fuel_tax" title="Fuel tax">fuel taxes</a>, <a href="/wiki/Severance_tax" title="Severance tax">severance taxes</a>, <a href="/wiki/Land_value_tax" title="Land value tax">land value taxes (LVT)</a> on the unimproved value of land, etc., is a classic example of the Pigouvian tax. It is a means to mitigate <a href="/wiki/Greenhouse_gas_emissions" title="Greenhouse gas emissions">greenhouse gas emissions</a>. Some said the environmental tax can deliver incentives to mitigate greenhouse gas emissions due to an increase in prices of fuel, carbon, or other types of taxes, and thus it can influence agents’ decisions economically and have effects on preserving the environment.<sup id="cite_ref-earth.org_26-0" class="reference"><a href="#cite_note-earth.org-26"><span class="cite-bracket">[</span>26<span class="cite-bracket">]</span></a></sup> However, others said that since these kinds of products are imposed taxes, their production prices will be higher, and thus the burden of increases in production costs can be shifted to consumers by increasing prices, which will increase pressure on low-income people and deteriorate <a href="/wiki/Income_inequality" class="mw-redirect" title="Income inequality">income inequality</a>.<sup id="cite_ref-earth.org_26-1" class="reference"><a href="#cite_note-earth.org-26"><span class="cite-bracket">[</span>26<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-doi.org_27-0" class="reference"><a href="#cite_note-doi.org-27"><span class="cite-bracket">[</span>27<span class="cite-bracket">]</span></a></sup> </p><p>According to the research of Manta, Sandler, Bădîrcea, Badareu, and Țăran,<sup id="cite_ref-doi.org_27-1" class="reference"><a href="#cite_note-doi.org-27"><span class="cite-bracket">[</span>27<span class="cite-bracket">]</span></a></sup> they found that although the Pigouvian theory does have effects on the reduction of greenhouse gas emissions, there are different results between developed countries and <a href="/wiki/Emerging_countries" class="mw-redirect" title="Emerging countries">emerging countries</a>. They revealed that once the Pigouvian tax in emerging countries is beyond the turning point, the effect of the Pigouvian tax on emissions will start decreasing. </p> <div class="mw-heading mw-heading3"><h3 id="Congestion_pricing">Congestion pricing</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Pigouvian_tax&action=edit&section=13" title="Edit section: Congestion pricing"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>From an economic aspect, congestion is a negative externality, for drivers can affect other drivers' costs of travel, such as costs of time, miles, or gasoline.<sup id="cite_ref-28" class="reference"><a href="#cite_note-28"><span class="cite-bracket">[</span>28<span class="cite-bracket">]</span></a></sup> </p><p>Therefore, in 1920 <a href="/wiki/Arthur_Cecil_Pigou" title="Arthur Cecil Pigou">A. C. Pigou</a> published the first edition of <i>The Economics of Welfare</i> and tried to solve the congestion problem. Although the two-road model provided by Pigou was not intended to suggest the need for Pigouvian taxes to mitigate traffic congestion and thus dropped from subsequent editions, it is thought to be a starting point to analyze the congestion traffic.<sup id="cite_ref-29" class="reference"><a href="#cite_note-29"><span class="cite-bracket">[</span>29<span class="cite-bracket">]</span></a></sup> Since 1963, when <a href="/wiki/William_Vickrey" title="William Vickrey">William Vickrey</a> published a paper and called for the pricing of traffic based on the <a href="/wiki/Welfare_economics" title="Welfare economics">welfare economic principle</a> of Pigou, this method started to attend into political aspect in order to resolute the congestion problem in big cities.<sup id="cite_ref-30" class="reference"><a href="#cite_note-30"><span class="cite-bracket">[</span>30<span class="cite-bracket">]</span></a></sup> </p><p>Some studies have found that implementing Pigouvian taxes as a solution to congestion externalities in the form of entrance fees or tolls (i.e. <a href="/wiki/Congestion_pricing" title="Congestion pricing">congestion pricing</a>) can maximize not only profits but also utility.<sup id="cite_ref-31" class="reference"><a href="#cite_note-31"><span class="cite-bracket">[</span>31<span class="cite-bracket">]</span></a></sup> However, others argued that it would increase the production costs of some industries, and that revenue would fall from the diminution of traffic.<sup id="cite_ref-32" class="reference"><a href="#cite_note-32"><span class="cite-bracket">[</span>32<span class="cite-bracket">]</span></a></sup> Heller, Johnen, and Schmitz argued that the traditional Pigouvian approach is not the optimal solution to the congestion problem. Rather, they believed the optimal solution is to charge drivers a variety of different prices which depend on the desired travel time, i.e. also depend on the number of drivers on the road.<sup id="cite_ref-33" class="reference"><a href="#cite_note-33"><span class="cite-bracket">[</span>33<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Fat_tax">Fat tax</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Pigouvian_tax&action=edit&section=14" title="Edit section: Fat tax"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>A <a href="/wiki/Fat_tax" title="Fat tax">fat tax</a> is a tax that incorporates unhealthy foods into a society's diet that is made from ingredients considered harmful, such as <a href="/wiki/Sugar" title="Sugar">sugar</a>, <a href="/wiki/Starch" title="Starch">starch</a>, and <a href="/wiki/Trans_fat" title="Trans fat">trans fats</a>. Governments implement health policy through education and price risks into food prices through taxes on public health products.<sup id="cite_ref-jstor.org_34-0" class="reference"><a href="#cite_note-jstor.org-34"><span class="cite-bracket">[</span>34<span class="cite-bracket">]</span></a></sup> Some say that consumers are price-sensitive, therefore, a fat tax can be imposed and used to enforce a healthy diet since the prices of harmful food are distorted by taxes, and consumers will be less willing to buy them. </p><p>However, others say that the fat taxes are different from, for example, the <a href="/wiki/Tobacco_smoking" title="Tobacco smoking">tobacco tax</a>. In the case of the tobacco tax the relation between cause and effect is more intuitive and direct, while in the case of the fat tax the relation between cause and effect is more ambiguous and indirect. There is no exact scientific evidence to prove that the nutrients can definitely lead to obesity. Other factors can also have impacts on one’s health, such as age, work, gender, etc.<sup id="cite_ref-35" class="reference"><a href="#cite_note-35"><span class="cite-bracket">[</span>35<span class="cite-bracket">]</span></a></sup> </p><p>Nutritional Index Fat Tax (NIFT) is levied on each food based on its food content and also takes into account that specific nutrients do not cause obesity but many substitute nutrients. Therefore, it considers the proportion of ingredients and the impact on obesity of a given food as an indicator, and taxes it according to this index.<sup id="cite_ref-jstor.org_34-1" class="reference"><a href="#cite_note-jstor.org-34"><span class="cite-bracket">[</span>34<span class="cite-bracket">]</span></a></sup> </p><p>There is also a worry that fat taxes may harm low-income people if healthy food is more expensive than unhealthy food, resulting in it just being a tax on people who can only afford unhealthy food. Another issue is black markets appearing or, if the tax is not granular enough, it may fall to the same issues as some types of <a href="/wiki/Sin_tax" title="Sin tax">sin tax</a> where if the tax is only set on whole categories of items at a time, as opposed to on a per-item basis based on best estimate of the negative externalities for any given item, it may incentivize people to switch to the cheapest item in that category, which is often the least healthy. </p> <div class="mw-heading mw-heading3"><h3 id="Plastic_taxes_(e.g_on_plastic_bags)"><span id="Plastic_taxes_.28e.g_on_plastic_bags.29"></span>Plastic taxes (e.g on plastic bags)</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Pigouvian_tax&action=edit&section=15" title="Edit section: Plastic taxes (e.g on plastic bags)"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>From January 1, 2021, the plastic tax becomes its own resource in the EU budget 2021–2027. It is not actually a tax but a contribution from member states to the EU, based on the amount of non-recycled <a href="/wiki/Plastic_packaging" class="mw-redirect" title="Plastic packaging">plastic packaging</a> waste generated by each member state. The aim is to reduce plastic waste and stimulate member states to develop a <a href="/wiki/Circular_economy" title="Circular economy">circular economy</a> together with the <a href="/wiki/European_Plastics_Strategy" class="mw-redirect" title="European Plastics Strategy">European Plastics Strategy</a>. Each member state can design its own tax legislation to collect the plastic tax from producers, consumers, importers, etc.<sup id="cite_ref-36" class="reference"><a href="#cite_note-36"><span class="cite-bracket">[</span>36<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-37" class="reference"><a href="#cite_note-37"><span class="cite-bracket">[</span>37<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Market_share_tax">Market share tax</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Pigouvian_tax&action=edit&section=16" title="Edit section: Market share tax"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <div class="excerpt-block"><style data-mw-deduplicate="TemplateStyles:r1066933788">.mw-parser-output .excerpt-hat .mw-editsection-like{font-style:normal}</style><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951" /><div role="note" class="hatnote navigation-not-searchable dablink excerpt-hat selfref">This section is an excerpt from <a href="/wiki/Market_share_tax" title="Market share tax">Market share tax</a>.<span class="mw-editsection-like plainlinks"><span class="mw-editsection-bracket">[</span><a class="external text" href="https://en.wikipedia.org/w/index.php?title=Market_share_tax&action=edit">edit</a><span class="mw-editsection-bracket">]</span></span></div><div class="excerpt"> <p><a href="/wiki/Market_share_tax" title="Market share tax">Market share tax</a> is a tax on a corporation's <a href="/wiki/Net_income" title="Net income">net income</a> at a rate that depends on the largest <a href="/wiki/Market_share" title="Market share">market share</a> that this corporation or its <a href="/wiki/Corporate_group" title="Corporate group">corporate group</a> in total holds in any single <a href="/wiki/Industry_classification" title="Industry classification">industry</a>, reaching a tax of up to 100% of net income at 100% of the group's market share. </p><p>The direct goal of this tax is to balance out the incentive that unregulated free markets create for corporations to create <a href="/wiki/Barriers_to_entry" title="Barriers to entry">barriers to entry</a>, become the dominant supplier, charge <a href="/wiki/Monopoly_price" title="Monopoly price">monopoly prices</a> and earn a higher profit margin without the need to innovate or to produce superior goods. </p><p>A vast majority of corporations have no significant market share or influence over the market price or quality and so are not the target group of a market share tax. To avoid making tax accounting more complicated for these corporations, they can be exempt from the tax if their group's highest market share is low, for example below 2%. A lower bound can also be set on the group's annual revenue to exclude groups that only have a significant share in a small or nascent industry. </p> Market share tax as a policy was first proposed anonymously on January 29, 2013 on policyproposals.com<sup id="cite_ref-38" class="reference"><a href="#cite_note-38"><span class="cite-bracket">[</span>38<span class="cite-bracket">]</span></a></sup> for use in the USA and then independently by Robert Peetsalu on December 1, 2024<sup id="cite_ref-39" class="reference"><a href="#cite_note-39"><span class="cite-bracket">[</span>39<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-40" class="reference"><a href="#cite_note-40"><span class="cite-bracket">[</span>40<span class="cite-bracket">]</span></a></sup> for use globally.</div></div> <div class="mw-heading mw-heading3"><h3 id="Noise_taxes">Noise taxes</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Pigouvian_tax&action=edit&section=17" title="Edit section: Noise taxes"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>A noise tax is a tax which is put in place to regulate <a href="/wiki/Noise_pollution" title="Noise pollution">noise pollution</a>, usually in order to not disturb nearby wildlife or communities. The most common cases of noise taxes are to do with the aviation industry and urban infrastructure such as highway construction. </p><p>Some examples of noise taxes which have been put in place have been in EU member states, such as <a href="/wiki/France" title="France">France</a> which has a noise tax on the aviation industry (Taxe sur les nuisances sonores aériennes, TNSA). The TNSA taxes both commercial and non-commercial aircraft which enter one of France's 10 busiest <a href="/wiki/List_of_airports_in_France" title="List of airports in France">airports</a>.<sup id="cite_ref-41" class="reference"><a href="#cite_note-41"><span class="cite-bracket">[</span>41<span class="cite-bracket">]</span></a></sup> The tax is calculated by a series of factors and coefficients, depending on the type of aircraft, weight of aeroplane (MTOW or Maximum Take-Off Weight), airport and timing of the flight. The tax is added up by the total number of flights per aircraft and reaches a higher level after a certain threshold. <sup id="cite_ref-42" class="reference"><a href="#cite_note-42"><span class="cite-bracket">[</span>42<span class="cite-bracket">]</span></a></sup> </p><p><a href="/wiki/Italy" title="Italy">Italy</a> also has a noise tax in the aviation industry called the IRESA (Imposta Regionale sulle Emissioni Sonore degli Aeromobili Civili), which is a special-purpose tax, originally formed in 2001 on a national level, and later repurposed into a regional tax in 2013. Similarly to the French noise tax laws, IRESA tax is calculated by calculating a fee based on several attributes, most importantly the regional airport tax rate. A couple of aircraft are exempt from IRESA; Aircraft whose MTOW is below 4.5 metric tonnes, state-owned aircraft, search and rescue, agriculture and firefighting to name a few.<sup id="cite_ref-43" class="reference"><a href="#cite_note-43"><span class="cite-bracket">[</span>43<span class="cite-bracket">]</span></a></sup> The total revenue of IRESA in the <a href="/wiki/Lazio_Region" class="mw-redirect" title="Lazio Region">Lazio Region</a> was €55mln in 2014.<sup id="cite_ref-44" class="reference"><a href="#cite_note-44"><span class="cite-bracket">[</span>44<span class="cite-bracket">]</span></a></sup> </p> <ul><li><a href="/wiki/Meat_tax" title="Meat tax">Meat taxes</a></li> <li><a href="/wiki/Sugar_tax_(disambiguation)" class="mw-redirect mw-disambig" title="Sugar tax (disambiguation)">Sugar taxes</a></li> <li><a href="/wiki/Tobacco_smoking#Taxation" title="Tobacco smoking">Tobacco taxes</a>, mainly due to <a href="/wiki/Passive_smoking" title="Passive smoking">passive smoking</a></li> <li>Cannabis taxes, mainly due to passive smoking</li> <li><a href="/wiki/Alcohol_tax" title="Alcohol tax">Alcohol taxes</a></li> <li><a href="/wiki/Sin_tax" title="Sin tax">Sin taxes</a> in general</li> <li><a href="/wiki/Luxury_tax" title="Luxury tax">Luxury taxes</a></li> <li><a href="/wiki/Tobin_tax" title="Tobin tax">Tobin tax</a> against speculation in the financial markets</li> <li>Chewing gum tax; with the proceeds going towards <a href="/wiki/Street_sweeping" class="mw-redirect" title="Street sweeping">street sweeping</a> and other measures</li></ul> <div class="mw-heading mw-heading2"><h2 id="Criticisms">Criticisms</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Pigouvian_tax&action=edit&section=18" title="Edit section: Criticisms"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Most of the criticism of the Pigouvian tax relates to the determination of the tax and the implementation. Pigou and <a href="/wiki/Friedrich_Hayek" title="Friedrich Hayek">Friedrich Hayek</a> point out that the assumption that the government can determine the marginal social cost of a negative externality and convert that amount into a monetary value is a weakness of the Pigouvian tax. <a href="/wiki/William_Baumol" title="William Baumol">William Baumol</a> suggests that the measurement of social cost is almost impossible. <a href="/wiki/Ronald_Coase" title="Ronald Coase">Ronald Coase</a> argues that all social costs are reciprocal in nature, so, once the tax is set, it must not be changed. Some point out that political factors can complicate the implementation of a Pigouvian tax, while others that the Pigouvian tax focuses solely on the market for the product that is responsible for the externality but does not take into account the interconnections with other markets, such as the labor market. </p> <div class="mw-heading mw-heading3"><h3 id="Theoretical_problem">Theoretical problem</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Pigouvian_tax&action=edit&section=19" title="Edit section: Theoretical problem"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>In his 2011 paper, "<a rel="nofollow" class="external text" href="https://www.sfu.ca/~allen/DemsetzSocialCost.pdf">The Problem of Social Cost: What Problem? A Critique of the Reasoning of A.C. Pigou and R.H. Coase</a>" Harold Demsetz provided two main theoretical objections, one of which was many years old, and one of which is new. He argued that both Pigou and Coase were theoretically incorrect to assume that there is a divergence between the social and private marginal product. He showed that property rights are exogenous to the market system. The market achieves the efficient outcome given property rights assignment (this was first pointed out by Frank Knight in 1924). Second, he showed that positive transaction costs are just any other cost. To separate these out to justify a disharmony or divergence between social and private marginal product is theoretically incorrect. </p> <div class="mw-heading mw-heading3"><h3 id="Measurement_problem">Measurement problem</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Pigouvian_tax&action=edit&section=20" title="Edit section: Measurement problem"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Arthur Pigou said: "It must be confessed, however, that we seldom know enough to decide in what fields and to what extent the State, on account of [the gaps between private and public costs] could interfere with individual choice."<sup id="cite_ref-45" class="reference"><a href="#cite_note-45"><span class="cite-bracket">[</span>45<span class="cite-bracket">]</span></a></sup> In other words, the economist's blackboard "model" assumes knowledge we don't possess –  it's a model with assumed "givens" which are in fact <i>not</i> given to anyone. <a href="/wiki/Friedrich_Hayek" title="Friedrich Hayek">Friedrich Hayek</a> would argue that this is knowledge which could not be provided as a "given" by any "method" yet discovered, due to insuperable cognitive limits.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (November 2012)">citation needed</span></a></i>]</sup> </p><p><a href="/wiki/William_Baumol" title="William Baumol">William Baumol</a> as well as Polodoo (2008) have argued that it is extraordinarily difficult to measure the social costs of any externality, especially because many costs are psychological and individual.<sup id="cite_ref-46" class="reference"><a href="#cite_note-46"><span class="cite-bracket">[</span>46<span class="cite-bracket">]</span></a></sup> Even if a measurement of the psychological effect of some externality did exist, it would be impossible to collect that data for all individuals affected and then find the optimum output level. Since it is not possible to find the optimum output level, it is not possible to find the optimum Pigouvian tax level to achieve that optimum. In the end, Baumol argues that the best solution is to set a minimum standard of acceptability for negative externalities and create tax systems to achieve those minimum standards. Baumol points out that government committees have a tradition of agreeing on minimum standards, so the practicality of this solution is reasonable. </p><p><a href="/wiki/Peter_Boettke" title="Peter Boettke">Peter Boettke</a> brings forth that "The Pigouvian remedy was to bring marginal private costs (subjectively understood) into line with marginal social costs (objectively understood). The problem, <a href="/wiki/James_M._Buchanan" title="James M. Buchanan">James M. Buchanan</a> pointed out, was that the analyst had to specify the conditions under which objectively measurable costs could be ascertained by economic and policy actors. In general, competitive equilibrium, there are also no deviations between marginal private costs and marginal social costs. In other words, Buchanan (like <a href="/wiki/Ronald_Coase" title="Ronald Coase">Ronald Coase</a>) pointed out that Pigouvian tax remedies are either possible and redundant or impossible to set because the conditions presupposed for their establishment either eliminate their necessity or (if absent) preclude their enactment." In other words, "<a href="/w/index.php?title=Karen_I._Vaughn&action=edit&redlink=1" class="new" title="Karen I. Vaughn (page does not exist)">Karen I. Vaughn</a> has pointed out the dilemma involved in this situation. To calculate the appropriate corrective tax, the policymaker must know the equilibrium price; yet the situation demanding correction implies a disequilibrium situation."<sup id="cite_ref-47" class="reference"><a href="#cite_note-47"><span class="cite-bracket">[</span>47<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-48" class="reference"><a href="#cite_note-48"><span class="cite-bracket">[</span>48<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Reciprocal_cost_problem">Reciprocal cost problem</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Pigouvian_tax&action=edit&section=21" title="Edit section: Reciprocal cost problem"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p><a href="/wiki/Ronald_Coase" title="Ronald Coase">Ronald Coase</a> argues that the tax placed on an industry creating a negative externality should not be changed after it is implemented.<sup id="cite_ref-49" class="reference"><a href="#cite_note-49"><span class="cite-bracket">[</span>49<span class="cite-bracket">]</span></a></sup> The crux of his argument is that all social costs are reciprocal in nature. Coase argues that a factory emitting smoke is not entirely responsible for the social harm of smoky air. If the factory were not there, no one would suffer from smoky air, and if the people were not there, no one would suffer from smoky air. Because of this reciprocity of harm, Coase argues that neither party bears sole responsibility for the social harm, so neither party should pay the full cost. The social harm gets worse, Coase argues, if only one offender pays for the social harm. If the smoke-emitting factory must pay dearly for all its smoke, it will reduce its quantity of production or buy the necessary technology to reduce its smoke rate. With the advent of clean air, neighbors may move into the area. This immediately increases the marginal social cost of smoke, which would require a tax increase on the factory. Essentially, each time the tax increases, the population increases and the marginal cost of the status quo increases again, so the factory is punished for making conditions good enough that people want to move there. </p><p>One complexity of this situation is the multiple local maxima or the interchangeable best-case scenarios. It all hinges on the numbers. If the cost of abating all smoke is more than the cost to move the neighbors out, the neighbors should move out and let the factory continue emitting smoke. On the other hand, if it costs less to abate the smoke than to move the neighbors, then the factory ought to pay the tax or buy the clean technology to provide clean air for the surrounding residents. Once the optimum solution is implemented, Coase argues that the tax should not change, regardless of changing circumstances. In this case, if a tax is imposed on the factory and some more neighbors move in, the factory tax should not increase. </p> <div class="mw-heading mw-heading3"><h3 id="Political_problem">Political problem</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Pigouvian_tax&action=edit&section=22" title="Edit section: Political problem"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Political factors such as lobbying of government by <a href="/wiki/Polluter" class="mw-redirect" title="Polluter">polluters</a> may also tend to reduce the level of the tax levied, which will tend to reduce the mitigating effect of the tax; lobbying of government by special interests who calculate the negative utility of the externality higher than others may also tend to increase the level of the tax levied, which will tend to result in a sub-optimal level of production. </p><p>Political factors can result in complementary problems when pollution opponents assert irrationally high levels of harm or operate from a hidden agenda of extirpating the polluting agent regardless of the prospects for regulating it to cause minimal harm; regulators are then driven to set absurdly high tax levels, possibly high enough to effectively prohibit operation. </p><p>Similarly, lobbyists whose agendas are entirely orthogonal to pollution reduction per se might intervene with regulators to drive tax rates higher or lower, thus preventing optimal operation of the tax. Likely instances of such include organizations intending to lower the polluter's market value as part of a pending plan to buy out its parent entity. Alternatively, there might be efforts to drive the polluter's market value higher prior to its sale. Familiar real-world examples of groups intervening for reason unrelated to pollution reduction include opponents of the polluter's (or the polluter's parent organization's) labor practices and groups with seemingly dogmatic opposition to anything connected to nuclear energy. </p><p>Earl A. Thompson and Ronald Batchelder cited one political problem with Pigouvian taxes being that if a firm can influence the tax rate or regulations put on it, the results will not be as certain as Pigou and Baumol suggested.<sup id="cite_ref-50" class="reference"><a href="#cite_note-50"><span class="cite-bracket">[</span>50<span class="cite-bracket">]</span></a></sup> Baumol responded to this, saying that almost all discussions on Pigouvian taxes include the assumption of pure competition.<sup id="cite_ref-51" class="reference"><a href="#cite_note-51"><span class="cite-bracket">[</span>51<span class="cite-bracket">]</span></a></sup> </p><p>This certainly does alter the scenario, but the literature had not ignored it; it had merely used a different set of assumptions. </p><p>Thomas A. Barthold argued in 1994 that actual policy decisions often come from budget requirements, not a concern for the environment.<sup id="cite_ref-52" class="reference"><a href="#cite_note-52"><span class="cite-bracket">[</span>52<span class="cite-bracket">]</span></a></sup> The taxes do not always parallel raw economic theory because social benefits and costs are hard to measure. He uses the <a href="/wiki/Montreal_Protocol" title="Montreal Protocol">1987 Montreal Protocol</a> as an example. President <a href="/wiki/George_H._W._Bush" title="George H. W. Bush">George H. W. Bush</a> signed this protocol that allowed either a permit auction or a tax on <a href="/wiki/Ozone-depleting_chemical" class="mw-redirect" title="Ozone-depleting chemical">ozone-depleting chemicals</a>. Barthold attributes the decision to implement the tax to the pressure on the Ways and Means committee to come up with more consistent revenue. </p><p>The tax policy also did not accord with basic common sense economic principles. For one, it makes sense to impose a tax on the industry that creates the pollution problem, on the activity that emits the harmful chemicals. This particular activity happened to be the use of automobiles with leaky compressor systems, but because of the high administration cost of taxing that many people, the government decided to tax the producers of those chemicals, though they contributed nothing to the actual problems of chlorofluorocarbons in the atmosphere. </p><p>Another evidence of the alternative motivations for this policy is the fact that the base tax increases annually. It is unclear whether the harm from chlorofluorocarbons increases every year and in the same increment, or whether $1.37 per pound accurately reflects the marginal social cost of pollution. The conspicuous hike in the tax in 1992 that equalized the Energy Policy Act's budget further supports the idea of alternative motivations for this policy. Additionally, if the motivation for this tax was solely environmental improvement, then all firms, including those that export goods, would be taxed rather than receiving exemptions. </p><p>Barthold noted that politicians often prefer regulations with obvious benefits and hidden costs over those with hidden benefits and obvious costs. For example, politicians may prefer to hand out permits to firms rather than impose a tax on them, even though the tax is more economically efficient. Free permits create winners among grandfathered firms and losers among consumers who have to pay more for the same product. In contrast, taxation makes losers of factory producers and indirect winners of consumers. </p><p><br /> </p> <div class="mw-heading mw-heading2"><h2 id="See_also">See also</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Pigouvian_tax&action=edit&section=23" title="Edit section: See also"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1184024115">.mw-parser-output .div-col{margin-top:0.3em;column-width:30em}.mw-parser-output .div-col-small{font-size:90%}.mw-parser-output .div-col-rules{column-rule:1px solid #aaa}.mw-parser-output .div-col dl,.mw-parser-output .div-col ol,.mw-parser-output .div-col ul{margin-top:0}.mw-parser-output .div-col li,.mw-parser-output .div-col dd{page-break-inside:avoid;break-inside:avoid-column}</style><div class="div-col" style="column-width: 21em;"> <ul><li><a href="/wiki/Carbon_trading" class="mw-redirect" title="Carbon trading">Carbon trading</a></li> <li><a href="/wiki/CC%E2%80%93PP_game" title="CC–PP game">CC–PP game</a></li> <li><a href="/wiki/Coase_theorem" title="Coase theorem">Coase theorem</a></li> <li><a href="/wiki/Container_deposit_legislation" class="mw-redirect" title="Container deposit legislation">Container deposit legislation</a></li> <li><a href="/wiki/Deposit-refund_system" title="Deposit-refund system">Deposit-refund system</a></li> <li><a href="/wiki/Environmental_Tax" class="mw-redirect" title="Environmental Tax">Environmental Tax</a></li> <li><a href="/wiki/Excise" title="Excise">Excise</a></li> <li><a href="/wiki/Geolibertarianism" title="Geolibertarianism">Geolibertarianism</a></li> <li><a href="/wiki/Georgism" title="Georgism">Georgism</a></li> <li><a href="/wiki/Pigou_Club" title="Pigou Club">Pigou Club</a> (also called "UDAY" parties in Asia)</li> <li><a href="/wiki/Priority_Sector_Lending_Certificates" title="Priority Sector Lending Certificates">Priority Sector Lending Certificates</a></li> <li><a href="/wiki/Polluter_pays_principle" title="Polluter pays principle">Polluter pays principle</a></li> <li><a href="/wiki/Sin_tax" title="Sin tax">Sin tax</a></li> <li><a href="/wiki/Alcohol_tax" title="Alcohol tax">Alcohol tax</a></li> <li><a href="/wiki/Social_cost#Pigouvian_taxes" title="Social cost">Social cost</a></li> <li><a href="/wiki/Soda_tax" class="mw-redirect" title="Soda tax">Soda tax</a></li> <li><a href="/wiki/Tax_choice" title="Tax choice">Tax choice</a></li></ul> </div> <div class="mw-heading mw-heading2"><h2 id="References">References</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Pigouvian_tax&action=edit&section=24" title="Edit section: References"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1239543626">.mw-parser-output .reflist{margin-bottom:0.5em;list-style-type:decimal}@media screen{.mw-parser-output .reflist{font-size:90%}}.mw-parser-output .reflist .references{font-size:100%;margin-bottom:0;list-style-type:inherit}.mw-parser-output .reflist-columns-2{column-width:30em}.mw-parser-output .reflist-columns-3{column-width:25em}.mw-parser-output .reflist-columns{margin-top:0.3em}.mw-parser-output .reflist-columns ol{margin-top:0}.mw-parser-output .reflist-columns li{page-break-inside:avoid;break-inside:avoid-column}.mw-parser-output .reflist-upper-alpha{list-style-type:upper-alpha}.mw-parser-output .reflist-upper-roman{list-style-type:upper-roman}.mw-parser-output .reflist-lower-alpha{list-style-type:lower-alpha}.mw-parser-output .reflist-lower-greek{list-style-type:lower-greek}.mw-parser-output .reflist-lower-roman{list-style-type:lower-roman}</style><div class="reflist"> <div class="mw-references-wrap mw-references-columns"><ol class="references"> <li id="cite_note-1"><span class="mw-cite-backlink"><b><a href="#cite_ref-1">^</a></b></span> <span class="reference-text"><style data-mw-deduplicate="TemplateStyles:r1238218222">.mw-parser-output cite.citation{font-style:inherit;word-wrap:break-word}.mw-parser-output .citation q{quotes:"\"""\"""'""'"}.mw-parser-output .citation:target{background-color:rgba(0,127,255,0.133)}.mw-parser-output .id-lock-free.id-lock-free a{background:url("//upload.wikimedia.org/wikipedia/commons/6/65/Lock-green.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-limited.id-lock-limited a,.mw-parser-output .id-lock-registration.id-lock-registration a{background:url("//upload.wikimedia.org/wikipedia/commons/d/d6/Lock-gray-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-subscription.id-lock-subscription a{background:url("//upload.wikimedia.org/wikipedia/commons/a/aa/Lock-red-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .cs1-ws-icon a{background:url("//upload.wikimedia.org/wikipedia/commons/4/4c/Wikisource-logo.svg")right 0.1em center/12px no-repeat}body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-free a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-limited a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-registration a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-subscription a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .cs1-ws-icon a{background-size:contain;padding:0 1em 0 0}.mw-parser-output .cs1-code{color:inherit;background:inherit;border:none;padding:inherit}.mw-parser-output .cs1-hidden-error{display:none;color:var(--color-error,#d33)}.mw-parser-output .cs1-visible-error{color:var(--color-error,#d33)}.mw-parser-output .cs1-maint{display:none;color:#085;margin-left:0.3em}.mw-parser-output .cs1-kern-left{padding-left:0.2em}.mw-parser-output .cs1-kern-right{padding-right:0.2em}.mw-parser-output .citation .mw-selflink{font-weight:inherit}@media screen{.mw-parser-output .cs1-format{font-size:95%}html.skin-theme-clientpref-night .mw-parser-output .cs1-maint{color:#18911f}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .cs1-maint{color:#18911f}}</style><cite id="CITEREFCornesSandlerHaberland1985" class="citation journal cs1">Cornes, Richard; Sandler, Todd; Haberland, G. (March 1985). "Externalities, expectations, and pigouvian taxes". <i>Journal of Environmental Economics and Management</i>. <b>12</b> (1): <span class="nowrap">1–</span>13. <a href="/wiki/Bibcode_(identifier)" class="mw-redirect" title="Bibcode (identifier)">Bibcode</a>:<a rel="nofollow" class="external text" href="https://ui.adsabs.harvard.edu/abs/1985JEEM...12....1C">1985JEEM...12....1C</a>. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.1016%2F0095-0696%2885%2990012-9">10.1016/0095-0696(85)90012-9</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Journal+of+Environmental+Economics+and+Management&rft.atitle=Externalities%2C+expectations%2C+and+pigouvian+taxes&rft.volume=12&rft.issue=1&rft.pages=%3Cspan+class%3D%22nowrap%22%3E1-%3C%2Fspan%3E13&rft.date=1985-03&rft_id=info%3Adoi%2F10.1016%2F0095-0696%2885%2990012-9&rft_id=info%3Abibcode%2F1985JEEM...12....1C&rft.aulast=Cornes&rft.aufirst=Richard&rft.au=Sandler%2C+Todd&rft.au=Haberland%2C+G.&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-2"><span class="mw-cite-backlink"><b><a href="#cite_ref-2">^</a></b></span> <span class="reference-text"><a href="/wiki/Agnar_Sandmo" title="Agnar Sandmo">Sandmo, Agnar</a> (2008). "Pigouvian taxes", <i><a href="/wiki/The_New_Palgrave_Dictionary_of_Economics" title="The New Palgrave Dictionary of Economics">The New Palgrave Dictionary of Economics</a></i>, 2nd edition. <a rel="nofollow" class="external text" href="http://www.dictionaryofeconomics.com/article?id=pde2008_P000351">Abstract.</a></span> </li> <li id="cite_note-Baumol1972-3"><span class="mw-cite-backlink">^ <a href="#cite_ref-Baumol1972_3-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-Baumol1972_3-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFBaumol1972" class="citation cs2"><a href="/wiki/William_J._Baumol" class="mw-redirect" title="William J. Baumol">Baumol, W.J.</a> (1972), "On Taxation and the Control of Externalities", <i>American Economic Review</i>, <b>62</b> (3): <a rel="nofollow" class="external text" href="http://stuff.mit.edu/afs/sipb/user/kolya/afs/root.afs/athena/dept/cron/project/urban-sustainability/Discouraging%20Driving_Patrick%20Lynch/Misc/Baumol%20On%20Taxation%20and%20Control%20of%20Externalities.pdf">307–322</a></cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=American+Economic+Review&rft.atitle=On+Taxation+and+the+Control+of+Externalities&rft.volume=62&rft.issue=3&rft.pages=307-322&rft.date=1972&rft.aulast=Baumol&rft.aufirst=W.J.&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span>.</span> </li> <li id="cite_note-4"><span class="mw-cite-backlink"><b><a href="#cite_ref-4">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFTurvey1963" class="citation journal cs1">Turvey, Ralph (1963). <a rel="nofollow" class="external text" href="https://www.jstor.org/stable/2601550">"On Divergences between Social Cost and Private Cost"</a>. <i>Economica</i>. <b>30</b> (119): <span class="nowrap">309–</span>313. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.2307%2F2601550">10.2307/2601550</a>. <a href="/wiki/JSTOR_(identifier)" class="mw-redirect" title="JSTOR (identifier)">JSTOR</a> <a rel="nofollow" class="external text" href="https://www.jstor.org/stable/2601550">2601550</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Economica&rft.atitle=On+Divergences+between+Social+Cost+and+Private+Cost&rft.volume=30&rft.issue=119&rft.pages=%3Cspan+class%3D%22nowrap%22%3E309-%3C%2Fspan%3E313&rft.date=1963&rft_id=info%3Adoi%2F10.2307%2F2601550&rft_id=https%3A%2F%2Fwww.jstor.org%2Fstable%2F2601550%23id-name%3DJSTOR&rft.aulast=Turvey&rft.aufirst=Ralph&rft_id=https%3A%2F%2Fwww.jstor.org%2Fstable%2F2601550&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-5"><span class="mw-cite-backlink"><b><a href="#cite_ref-5">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://taxfoundation.org/taxedu/glossary/pigouvian-tax/">"What is a Pigouvian Tax?"</a>. <i>Tax Foundation</i>. 18 January 2024.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=Tax+Foundation&rft.atitle=What+is+a+Pigouvian+Tax%3F&rft.date=2024-01-18&rft_id=https%3A%2F%2Ftaxfoundation.org%2Ftaxedu%2Fglossary%2Fpigouvian-tax%2F&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-6"><span class="mw-cite-backlink"><b><a href="#cite_ref-6">^</a></b></span> <span class="reference-text">• Carlton, Dennis W., and <a href="/wiki/Glenn_C._Loury" class="mw-redirect" title="Glenn C. Loury">Glenn C. Loury</a> (1980). "The Limitations of Pigouvian Taxes as a Long-Run Remedy for Externalities", <i><a href="/wiki/Quarterly_Journal_of_Economics" class="mw-redirect" title="Quarterly Journal of Economics">Quarterly Journal of Economics</a></i>, 95(3), pp. <a rel="nofollow" class="external text" href="https://www.jstor.org/discover/10.2307/1885093?uid=3739936&uid=2&uid=4&uid=3739256&sid=21101798807531">559</a>–566.<br />   • Althouse, Benjamin M., Theodore C. Bergstrom, and <a href="/wiki/Carl_Bergstrom" title="Carl Bergstrom">Carl T. Bergstrom</a> (2010). "A Public Choice Framework for Controlling Transmissible and Evolving Diseases," <i>Proceedings of the National Academy of Sciences</i>, January 26; 107(suppl. 1), pp. <a rel="nofollow" class="external text" href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2868281/">1696–1701.</a></span> </li> <li id="cite_note-7"><span class="mw-cite-backlink"><b><a href="#cite_ref-7">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://www.dyingeconomy.com/pigouvian-subsidy.html">"Pigouvian Subsidy (Definition & Examples)"</a>. <i>www.dyingeconomy.com</i>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=www.dyingeconomy.com&rft.atitle=Pigouvian+Subsidy+%28Definition+%26+Examples%29&rft_id=https%3A%2F%2Fwww.dyingeconomy.com%2Fpigouvian-subsidy.html&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-8"><span class="mw-cite-backlink"><b><a href="#cite_ref-8">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFPigou1920" class="citation book cs1">Pigou, A.C. (1920). <a rel="nofollow" class="external text" href="https://archive.org/details/dli.bengal.10689.4260"><i>The Economics of Welfare</i></a>. London: Macmillan.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=The+Economics+of+Welfare&rft.place=London&rft.pub=Macmillan&rft.date=1920&rft.aulast=Pigou&rft.aufirst=A.C.&rft_id=https%3A%2F%2Farchive.org%2Fdetails%2Fdli.bengal.10689.4260&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-9"><span class="mw-cite-backlink"><b><a href="#cite_ref-9">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFCarltonLoury1980" class="citation journal cs1">Carlton, Dennis W.; Loury, Glenn C. (1980). "The Limitations of Pigouvian Taxes as a Long-Run Remedy for Externalities". <i>Quarterly Journal of Economics</i>. <b>95</b> (3): <span class="nowrap">559–</span>566. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.2307%2F1885093">10.2307/1885093</a>. <a href="/wiki/JSTOR_(identifier)" class="mw-redirect" title="JSTOR (identifier)">JSTOR</a> <a rel="nofollow" class="external text" href="https://www.jstor.org/stable/1885093">1885093</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Quarterly+Journal+of+Economics&rft.atitle=The+Limitations+of+Pigouvian+Taxes+as+a+Long-Run+Remedy+for+Externalities&rft.volume=95&rft.issue=3&rft.pages=%3Cspan+class%3D%22nowrap%22%3E559-%3C%2Fspan%3E566&rft.date=1980&rft_id=info%3Adoi%2F10.2307%2F1885093&rft_id=https%3A%2F%2Fwww.jstor.org%2Fstable%2F1885093%23id-name%3DJSTOR&rft.aulast=Carlton&rft.aufirst=Dennis+W.&rft.au=Loury%2C+Glenn+C.&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-10"><span class="mw-cite-backlink"><b><a href="#cite_ref-10">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFKohn1986" class="citation journal cs1">Kohn, Robert E. (1986). "The Limitations of Pigouvian Taxes as a Long-Run Remedy for Externalities: Comment". <i>Quarterly Journal of Economics</i>. <b>101</b> (3): <span class="nowrap">625–</span>630. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.2307%2F1885700">10.2307/1885700</a>. <a href="/wiki/JSTOR_(identifier)" class="mw-redirect" title="JSTOR (identifier)">JSTOR</a> <a rel="nofollow" class="external text" href="https://www.jstor.org/stable/1885700">1885700</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Quarterly+Journal+of+Economics&rft.atitle=The+Limitations+of+Pigouvian+Taxes+as+a+Long-Run+Remedy+for+Externalities%3A+Comment&rft.volume=101&rft.issue=3&rft.pages=%3Cspan+class%3D%22nowrap%22%3E625-%3C%2Fspan%3E630&rft.date=1986&rft_id=info%3Adoi%2F10.2307%2F1885700&rft_id=https%3A%2F%2Fwww.jstor.org%2Fstable%2F1885700%23id-name%3DJSTOR&rft.aulast=Kohn&rft.aufirst=Robert+E.&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-11"><span class="mw-cite-backlink"><b><a href="#cite_ref-11">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFCarltonLoury1986" class="citation journal cs1">Carlton, Dennis W.; Loury, Glenn C. (1986). "The Limitation of Pigouvian Taxes as a Long-Run Remedy for Externalities: An Extension of Results". <i>Quarterly Journal of Economics</i>. <b>101</b> (3): <span class="nowrap">631–</span>634. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.2307%2F1885701">10.2307/1885701</a>. <a href="/wiki/JSTOR_(identifier)" class="mw-redirect" title="JSTOR (identifier)">JSTOR</a> <a rel="nofollow" class="external text" href="https://www.jstor.org/stable/1885701">1885701</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Quarterly+Journal+of+Economics&rft.atitle=The+Limitation+of+Pigouvian+Taxes+as+a+Long-Run+Remedy+for+Externalities%3A+An+Extension+of+Results&rft.volume=101&rft.issue=3&rft.pages=%3Cspan+class%3D%22nowrap%22%3E631-%3C%2Fspan%3E634&rft.date=1986&rft_id=info%3Adoi%2F10.2307%2F1885701&rft_id=https%3A%2F%2Fwww.jstor.org%2Fstable%2F1885701%23id-name%3DJSTOR&rft.aulast=Carlton&rft.aufirst=Dennis+W.&rft.au=Loury%2C+Glenn+C.&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-12"><span class="mw-cite-backlink"><b><a href="#cite_ref-12">^</a></b></span> <span class="reference-text">Tullock, G. (1967), "Excess benefit", Water Resources Research, 3, 643–44.</span> </li> <li id="cite_note-13"><span class="mw-cite-backlink"><b><a href="#cite_ref-13">^</a></b></span> <span class="reference-text">Bovenberg, A.L. and R.A. de Mooij (1994), 'Environmental levies and distortionary taxation', Ameri¬can Economic Review, 94 (4), 1085–89.</span> </li> <li id="cite_note-Fullerton_42-14"><span class="mw-cite-backlink">^ <a href="#cite_ref-Fullerton_42_14-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-Fullerton_42_14-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFFullertonMetcalf1997" class="citation journal cs1">Fullerton, Don; Metcalf, Gilbert E. (September 1997). "Environmental Taxes and the Double-Dividend Hypothesis: Did You Really Expect Something for Nothing?". <i>NBER Working Papers</i> (w6199): 42. <a href="/wiki/SSRN_(identifier)" class="mw-redirect" title="SSRN (identifier)">SSRN</a> <a rel="nofollow" class="external text" href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=225957">225957</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=NBER+Working+Papers&rft.atitle=Environmental+Taxes+and+the+Double-Dividend+Hypothesis%3A+Did+You+Really+Expect+Something+for+Nothing%3F&rft.issue=w6199&rft.pages=42&rft.date=1997-09&rft_id=https%3A%2F%2Fpapers.ssrn.com%2Fsol3%2Fpapers.cfm%3Fabstract_id%3D225957%23id-name%3DSSRN&rft.aulast=Fullerton&rft.aufirst=Don&rft.au=Metcalf%2C+Gilbert+E.&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-15"><span class="mw-cite-backlink"><b><a href="#cite_ref-15">^</a></b></span> <span class="reference-text">Bovenberg, A. Lans and de Mooij, Ruud A. (1994). "Environmental Levies and Distortionary Taxation," The American Economic Review, 84(4): 1085–1089.</span> </li> <li id="cite_note-16"><span class="mw-cite-backlink"><b><a href="#cite_ref-16">^</a></b></span> <span class="reference-text">Fullerton, Don (1997). "Environmental Levies and Distortionary Taxation: Comment," The American Economic Review, 87(1): 245–251.</span> </li> <li id="cite_note-17"><span class="mw-cite-backlink"><b><a href="#cite_ref-17">^</a></b></span> <span class="reference-text">Jaeger, W.K. (2011), 'The welfare effects of environmental taxation', Environmental and Resource Economics, 49 (1), 101–19.</span> </li> <li id="cite_note-18"><span class="mw-cite-backlink"><b><a href="#cite_ref-18">^</a></b></span> <span class="reference-text">Jaeger, William K., 2013. The Double Dividend Debate. In Handbook of Research on Environmental Taxation (Janet E. Milne and Mikael S. Anderson editors). Edward Elgar Publishing.</span> </li> <li id="cite_note-19"><span class="mw-cite-backlink"><b><a href="#cite_ref-19">^</a></b></span> <span class="reference-text">Jorgenson, Dale W., et al. Double dividend: Environmental taxes and fiscal reform in the United States. MIT Press, 2013.</span> </li> <li id="cite_note-20"><span class="mw-cite-backlink"><b><a href="#cite_ref-20">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFKnittelSandler2018" class="citation journal cs1">Knittel, Christopher R.; Sandler, Ryan (1 November 2018). "The Welfare Impact of Second-Best Uniform-Pigouvian Taxation: Evidence from Transportation". <i>American Economic Journal: Economic Policy</i>. <b>10</b> (4): <span class="nowrap">211–</span>242. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.1257%2Fpol.20160508">10.1257/pol.20160508</a>. <a href="/wiki/Hdl_(identifier)" class="mw-redirect" title="Hdl (identifier)">hdl</a>:<span class="id-lock-free" title="Freely accessible"><a rel="nofollow" class="external text" href="https://hdl.handle.net/1721.1%2F120525">1721.1/120525</a></span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=American+Economic+Journal%3A+Economic+Policy&rft.atitle=The+Welfare+Impact+of+Second-Best+Uniform-Pigouvian+Taxation%3A+Evidence+from+Transportation&rft.volume=10&rft.issue=4&rft.pages=%3Cspan+class%3D%22nowrap%22%3E211-%3C%2Fspan%3E242&rft.date=2018-11-01&rft_id=info%3Ahdl%2F1721.1%2F120525&rft_id=info%3Adoi%2F10.1257%2Fpol.20160508&rft.aulast=Knittel&rft.aufirst=Christopher+R.&rft.au=Sandler%2C+Ryan&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-21"><span class="mw-cite-backlink"><b><a href="#cite_ref-21">^</a></b></span> <span class="reference-text">Coase, Ronald H. (1960), "The Problem of Social Cost", <i>Journal of Law and Economics</i>, 3 (1): 1–44.</span> </li> <li id="cite_note-22"><span class="mw-cite-backlink"><b><a href="#cite_ref-22">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFRosenkranzSchmitz2007" class="citation journal cs1">Rosenkranz, Stephanie; Schmitz, Patrick W. (2007). "Can Coasean Bargaining Justify Pigouvian Taxation?". <i>Economica</i>. <b>74</b> (296): <span class="nowrap">573–</span>585. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.1111%2Fj.1468-0335.2006.00556.x">10.1111/j.1468-0335.2006.00556.x</a>. <a href="/wiki/Hdl_(identifier)" class="mw-redirect" title="Hdl (identifier)">hdl</a>:<span class="id-lock-free" title="Freely accessible"><a rel="nofollow" class="external text" href="https://hdl.handle.net/10419%2F22952">10419/22952</a></span>. <a href="/wiki/ISSN_(identifier)" class="mw-redirect" title="ISSN (identifier)">ISSN</a> <a rel="nofollow" class="external text" href="https://search.worldcat.org/issn/1468-0335">1468-0335</a>. <a href="/wiki/S2CID_(identifier)" class="mw-redirect" title="S2CID (identifier)">S2CID</a> <a rel="nofollow" class="external text" href="https://api.semanticscholar.org/CorpusID:154310004">154310004</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Economica&rft.atitle=Can+Coasean+Bargaining+Justify+Pigouvian+Taxation%3F&rft.volume=74&rft.issue=296&rft.pages=%3Cspan+class%3D%22nowrap%22%3E573-%3C%2Fspan%3E585&rft.date=2007&rft_id=info%3Ahdl%2F10419%2F22952&rft_id=https%3A%2F%2Fapi.semanticscholar.org%2FCorpusID%3A154310004%23id-name%3DS2CID&rft.issn=1468-0335&rft_id=info%3Adoi%2F10.1111%2Fj.1468-0335.2006.00556.x&rft.aulast=Rosenkranz&rft.aufirst=Stephanie&rft.au=Schmitz%2C+Patrick+W.&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-23"><span class="mw-cite-backlink"><b><a href="#cite_ref-23">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFAntràsStaiger2012" class="citation journal cs1">Antràs, Pol; Staiger, Robert W (2012). <a rel="nofollow" class="external text" href="http://nrs.harvard.edu/urn-3:HUL.InstRepos:3374525">"Offshoring and the Role of Trade Agreements"</a>. <i>American Economic Review</i>. <b>102</b> (7): <span class="nowrap">3140–</span>3183. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.1257%2Faer.102.7.3140">10.1257/aer.102.7.3140</a>. <a href="/wiki/ISSN_(identifier)" class="mw-redirect" title="ISSN (identifier)">ISSN</a> <a rel="nofollow" class="external text" href="https://search.worldcat.org/issn/0002-8282">0002-8282</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=American+Economic+Review&rft.atitle=Offshoring+and+the+Role+of+Trade+Agreements&rft.volume=102&rft.issue=7&rft.pages=%3Cspan+class%3D%22nowrap%22%3E3140-%3C%2Fspan%3E3183&rft.date=2012&rft_id=info%3Adoi%2F10.1257%2Faer.102.7.3140&rft.issn=0002-8282&rft.aulast=Antr%C3%A0s&rft.aufirst=Pol&rft.au=Staiger%2C+Robert+W&rft_id=http%3A%2F%2Fnrs.harvard.edu%2Furn-3%3AHUL.InstRepos%3A3374525&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-24"><span class="mw-cite-backlink"><b><a href="#cite_ref-24">^</a></b></span> <span class="reference-text">Fullerton, Don and Metcalf, Gilbert (1998). "<a rel="nofollow" class="external text" href="http://ase.tufts.edu/econ/papers/9706.pdf">Environmental Taxes and the Double-Dividend Hypothesis: Did You Really Expect Something for Nothing?</a>" Chicago-Kent Law Review, 73: 221–256.</span> </li> <li id="cite_note-25"><span class="mw-cite-backlink"><b><a href="#cite_ref-25">^</a></b></span> <span class="reference-text">Goulder, Lawrence H., Parry, Ian W.H., and Burtraw, Dallas (1997). "Revenue-raising versus other approaches to environmental protection: The critical significance of preexisting tax distortions", <i>The RAND Journal of Economics</i>, 28(4): 708–731.</span> </li> <li id="cite_note-earth.org-26"><span class="mw-cite-backlink">^ <a href="#cite_ref-earth.org_26-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-earth.org_26-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFGuha2023" class="citation web cs1">Guha, Annanya (1 June 2023). <a rel="nofollow" class="external text" href="https://earth.org/carbon-tax-revenue-neutrality/">"The Importance of Revenue Neutrality for Carbon Tax's Success"</a>. <i>Earth.Org</i>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=Earth.Org&rft.atitle=The+Importance+of+Revenue+Neutrality+for+Carbon+Tax%27s+Success&rft.date=2023-06-01&rft.aulast=Guha&rft.aufirst=Annanya&rft_id=https%3A%2F%2Fearth.org%2Fcarbon-tax-revenue-neutrality%2F&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-doi.org-27"><span class="mw-cite-backlink">^ <a href="#cite_ref-doi.org_27-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-doi.org_27-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFMantaDoranBădîrceaBadareu2023" class="citation journal cs1">Manta, Alina Georgiana; Doran, Nicoleta Mihaela; Bădîrcea, Roxana Maria; Badareu, Gabriela; Țăran, Alexandra Mădălina (1 December 2023). <a rel="nofollow" class="external text" href="https://doi.org/10.1016/j.eap.2023.11.002">"Does the implementation of a Pigouvian tax be considered an effective approach to address climate change mitigation?"</a>. <i>Economic Analysis and Policy</i>. <b>80</b>: <span class="nowrap">1719–</span>1731. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.1016%2Fj.eap.2023.11.002">10.1016/j.eap.2023.11.002</a>. <a href="/wiki/ISSN_(identifier)" class="mw-redirect" title="ISSN (identifier)">ISSN</a> <a rel="nofollow" class="external text" href="https://search.worldcat.org/issn/0313-5926">0313-5926</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Economic+Analysis+and+Policy&rft.atitle=Does+the+implementation+of+a+Pigouvian+tax+be+considered+an+effective+approach+to+address+climate+change+mitigation%3F&rft.volume=80&rft.pages=%3Cspan+class%3D%22nowrap%22%3E1719-%3C%2Fspan%3E1731&rft.date=2023-12-01&rft_id=info%3Adoi%2F10.1016%2Fj.eap.2023.11.002&rft.issn=0313-5926&rft.aulast=Manta&rft.aufirst=Alina+Georgiana&rft.au=Doran%2C+Nicoleta+Mihaela&rft.au=B%C4%83d%C3%AErcea%2C+Roxana+Maria&rft.au=Badareu%2C+Gabriela&rft.au=%C8%9A%C4%83ran%2C+Alexandra+M%C4%83d%C4%83lina&rft_id=https%3A%2F%2Fdoi.org%2F10.1016%2Fj.eap.2023.11.002&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-28"><span class="mw-cite-backlink"><b><a href="#cite_ref-28">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFHellerJohnenSchmitz2019" class="citation journal cs1">Heller, C.-Philipp; Johnen, Johannes; Schmitz, Sebastian (2019). "Congestion Pricing: A Mechanism Design Approach". <i>Journal of Transport Economics and Policy</i>. <b>53</b> (1): <span class="nowrap">74–</span>98. <a href="/wiki/JSTOR_(identifier)" class="mw-redirect" title="JSTOR (identifier)">JSTOR</a> <a rel="nofollow" class="external text" href="https://www.jstor.org/stable/90026261">90026261</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Journal+of+Transport+Economics+and+Policy&rft.atitle=Congestion+Pricing%3A+A+Mechanism+Design+Approach&rft.volume=53&rft.issue=1&rft.pages=%3Cspan+class%3D%22nowrap%22%3E74-%3C%2Fspan%3E98&rft.date=2019&rft_id=https%3A%2F%2Fwww.jstor.org%2Fstable%2F90026261%23id-name%3DJSTOR&rft.aulast=Heller&rft.aufirst=C.-Philipp&rft.au=Johnen%2C+Johannes&rft.au=Schmitz%2C+Sebastian&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-29"><span class="mw-cite-backlink"><b><a href="#cite_ref-29">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFMcDonald2013" class="citation journal cs1">McDonald, John F. (September 2013). "Pigou, Knight, Diminishing Returns, and Optimal Pigouvian Congestion Tolls". <i>Journal of the History of Economic Thought</i>. <b>35</b> (3): <span class="nowrap">353–</span>371. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.1017%2FS1053837213000217">10.1017/S1053837213000217</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Journal+of+the+History+of+Economic+Thought&rft.atitle=Pigou%2C+Knight%2C+Diminishing+Returns%2C+and+Optimal+Pigouvian+Congestion+Tolls&rft.volume=35&rft.issue=3&rft.pages=%3Cspan+class%3D%22nowrap%22%3E353-%3C%2Fspan%3E371&rft.date=2013-09&rft_id=info%3Adoi%2F10.1017%2FS1053837213000217&rft.aulast=McDonald&rft.aufirst=John+F.&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-30"><span class="mw-cite-backlink"><b><a href="#cite_ref-30">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFAnas2020" class="citation journal cs1">Anas, Alex (June 2020). "The cost of congestion and the benefits of congestion pricing: A general equilibrium analysis". <i>Transportation Research Part B: Methodological</i>. <b>136</b>: <span class="nowrap">110–</span>137. <a href="/wiki/Bibcode_(identifier)" class="mw-redirect" title="Bibcode (identifier)">Bibcode</a>:<a rel="nofollow" class="external text" href="https://ui.adsabs.harvard.edu/abs/2020TRPB..136..110A">2020TRPB..136..110A</a>. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.1016%2Fj.trb.2020.03.003">10.1016/j.trb.2020.03.003</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Transportation+Research+Part+B%3A+Methodological&rft.atitle=The+cost+of+congestion+and+the+benefits+of+congestion+pricing%3A+A+general+equilibrium+analysis&rft.volume=136&rft.pages=%3Cspan+class%3D%22nowrap%22%3E110-%3C%2Fspan%3E137&rft.date=2020-06&rft_id=info%3Adoi%2F10.1016%2Fj.trb.2020.03.003&rft_id=info%3Abibcode%2F2020TRPB..136..110A&rft.aulast=Anas&rft.aufirst=Alex&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-31"><span class="mw-cite-backlink"><b><a href="#cite_ref-31">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFLyonLee2001" class="citation journal cs1">Lyon, Kenneth; Lee, Dug (1 January 2001). <a rel="nofollow" class="external text" href="https://digitalcommons.usu.edu/eri/223">"Pigouvian Tax and the Congestion Externality: A Benefit Side Approach"</a>. <i>Economics Research Institute Study Paper</i>. <b>10</b>: <span class="nowrap">1–</span>19.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Economics+Research+Institute+Study+Paper&rft.atitle=Pigouvian+Tax+and+the+Congestion+Externality%3A+A+Benefit+Side+Approach&rft.volume=10&rft.pages=%3Cspan+class%3D%22nowrap%22%3E1-%3C%2Fspan%3E19&rft.date=2001-01-01&rft.aulast=Lyon&rft.aufirst=Kenneth&rft.au=Lee%2C+Dug&rft_id=https%3A%2F%2Fdigitalcommons.usu.edu%2Feri%2F223&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-32"><span class="mw-cite-backlink"><b><a href="#cite_ref-32">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFTardi2023" class="citation journal cs1">Tardi, Carla (June 12, 2023). <a rel="nofollow" class="external text" href="https://www.investopedia.com/terms/c/congestion-pricing.asp">"Congestion Pricing: Overview, Advantages and Disadvantages"</a>. <i>Investopedia</i><span class="reference-accessdate">. Retrieved <span class="nowrap">27 March</span> 2024</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Investopedia&rft.atitle=Congestion+Pricing%3A+Overview%2C+Advantages+and+Disadvantages&rft.date=2023-06-12&rft.aulast=Tardi&rft.aufirst=Carla&rft_id=https%3A%2F%2Fwww.investopedia.com%2Fterms%2Fc%2Fcongestion-pricing.asp&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-33"><span class="mw-cite-backlink"><b><a href="#cite_ref-33">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFHellerJohnenSchmitz2019" class="citation journal cs1">Heller, C.-Philipp; Johnen, Johannes; Schmitz, Sebastian (2019). <a rel="nofollow" class="external text" href="https://www.jstor.org/stable/90026261">"Congestion Pricing: A Mechanism Design Approach"</a>. <i>Journal of Transport Economics and Policy</i>. <b>53</b> (1): <span class="nowrap">74–</span>98. <a href="/wiki/ISSN_(identifier)" class="mw-redirect" title="ISSN (identifier)">ISSN</a> <a rel="nofollow" class="external text" href="https://search.worldcat.org/issn/0022-5258">0022-5258</a>. <a href="/wiki/JSTOR_(identifier)" class="mw-redirect" title="JSTOR (identifier)">JSTOR</a> <a rel="nofollow" class="external text" href="https://www.jstor.org/stable/90026261">90026261</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Journal+of+Transport+Economics+and+Policy&rft.atitle=Congestion+Pricing%3A+A+Mechanism+Design+Approach&rft.volume=53&rft.issue=1&rft.pages=%3Cspan+class%3D%22nowrap%22%3E74-%3C%2Fspan%3E98&rft.date=2019&rft_id=https%3A%2F%2Fwww.jstor.org%2Fstable%2F90026261%23id-name%3DJSTOR&rft.issn=0022-5258&rft.aulast=Heller&rft.aufirst=C.-Philipp&rft.au=Johnen%2C+Johannes&rft.au=Schmitz%2C+Sebastian&rft_id=https%3A%2F%2Fwww.jstor.org%2Fstable%2F90026261&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-jstor.org-34"><span class="mw-cite-backlink">^ <a href="#cite_ref-jstor.org_34-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-jstor.org_34-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFKutasiPerger2015" class="citation journal cs1">Kutasi, Gábor; Perger, Júlia (2015). <a rel="nofollow" class="external text" href="https://www.jstor.org/stable/43773867">"Tax Incentives Applied Against Externalities: International Examples of Fat Tax and Carbon Tax"</a>. <i>Society and Economy</i>. <b>37</b>: <span class="nowrap">117–</span>135. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.1556%2F204.2015.37.s.8">10.1556/204.2015.37.s.8</a>. <a href="/wiki/ISSN_(identifier)" class="mw-redirect" title="ISSN (identifier)">ISSN</a> <a rel="nofollow" class="external text" href="https://search.worldcat.org/issn/1588-9726">1588-9726</a>. <a href="/wiki/JSTOR_(identifier)" class="mw-redirect" title="JSTOR (identifier)">JSTOR</a> <a rel="nofollow" class="external text" href="https://www.jstor.org/stable/43773867">43773867</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Society+and+Economy&rft.atitle=Tax+Incentives+Applied+Against+Externalities%3A+International+Examples+of+Fat+Tax+and+Carbon+Tax&rft.volume=37&rft.pages=%3Cspan+class%3D%22nowrap%22%3E117-%3C%2Fspan%3E135&rft.date=2015&rft.issn=1588-9726&rft_id=https%3A%2F%2Fwww.jstor.org%2Fstable%2F43773867%23id-name%3DJSTOR&rft_id=info%3Adoi%2F10.1556%2F204.2015.37.s.8&rft.aulast=Kutasi&rft.aufirst=G%C3%A1bor&rft.au=Perger%2C+J%C3%BAlia&rft_id=https%3A%2F%2Fwww.jstor.org%2Fstable%2F43773867&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-35"><span class="mw-cite-backlink"><b><a href="#cite_ref-35">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFKutasiPerger2015" class="citation journal cs1">Kutasi, Gábor; Perger, Júlia (2015). <a rel="nofollow" class="external text" href="https://www.jstor.org/stable/43773867">"Tax Incentives Applied Against Externalities: International Examples of Fat Tax and Carbon Tax"</a>. <i>Society and Economy</i>. <b>37</b>: <span class="nowrap">117–</span>135. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.1556%2F204.2015.37.s.8">10.1556/204.2015.37.s.8</a>. <a href="/wiki/JSTOR_(identifier)" class="mw-redirect" title="JSTOR (identifier)">JSTOR</a> <a rel="nofollow" class="external text" href="https://www.jstor.org/stable/43773867">43773867</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Society+and+Economy&rft.atitle=Tax+Incentives+Applied+Against+Externalities%3A+International+Examples+of+Fat+Tax+and+Carbon+Tax&rft.volume=37&rft.pages=%3Cspan+class%3D%22nowrap%22%3E117-%3C%2Fspan%3E135&rft.date=2015&rft_id=info%3Adoi%2F10.1556%2F204.2015.37.s.8&rft_id=https%3A%2F%2Fwww.jstor.org%2Fstable%2F43773867%23id-name%3DJSTOR&rft.aulast=Kutasi&rft.aufirst=G%C3%A1bor&rft.au=Perger%2C+J%C3%BAlia&rft_id=https%3A%2F%2Fwww.jstor.org%2Fstable%2F43773867&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-36"><span class="mw-cite-backlink"><b><a href="#cite_ref-36">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://commission.europa.eu/strategy-and-policy/eu-budget/long-term-eu-budget/2021-2027/revenue/own-resources/plastics-own-resource_en">"Plastics own resource - European Commission"</a>. <i>commission.europa.eu</i>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=commission.europa.eu&rft.atitle=Plastics+own+resource+-+European+Commission&rft_id=https%3A%2F%2Fcommission.europa.eu%2Fstrategy-and-policy%2Feu-budget%2Flong-term-eu-budget%2F2021-2027%2Frevenue%2Fown-resources%2Fplastics-own-resource_en&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-37"><span class="mw-cite-backlink"><b><a href="#cite_ref-37">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://kpmg.com/xx/en/home/insights/2021/09/plastic-tax.html">"Plastic Tax – KPMG Global"</a>. <i>KPMG</i>. 1 April 2024.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=KPMG&rft.atitle=Plastic+Tax+%E2%80%93+KPMG+Global&rft.date=2024-04-01&rft_id=https%3A%2F%2Fkpmg.com%2Fxx%2Fen%2Fhome%2Finsights%2F2021%2F09%2Fplastic-tax.html&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-38"><span class="mw-cite-backlink"><b><a href="#cite_ref-38">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://policyproposals.com/11-market-share-tax/">"Market Share Tax"</a>. <i>policyproposals.com</i>. January 29, 2013.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=policyproposals.com&rft.atitle=Market+Share+Tax&rft.date=2013-01-29&rft_id=https%3A%2F%2Fpolicyproposals.com%2F11-market-share-tax%2F&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-39"><span class="mw-cite-backlink"><b><a href="#cite_ref-39">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFPeetsalu2024" class="citation web cs1">Peetsalu, Robert (December 1, 2024). <a rel="nofollow" class="external text" href="https://docs.google.com/document/d/1Ngx4kOr89_EBVWPEa99EfIiEFEvMKUF9xop8HTjS3UU/edit">"Market share tax"</a>. <i>Google Docs</i>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=Google+Docs&rft.atitle=Market+share+tax&rft.date=2024-12-01&rft.aulast=Peetsalu&rft.aufirst=Robert&rft_id=https%3A%2F%2Fdocs.google.com%2Fdocument%2Fd%2F1Ngx4kOr89_EBVWPEa99EfIiEFEvMKUF9xop8HTjS3UU%2Fedit&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-40"><span class="mw-cite-backlink"><b><a href="#cite_ref-40">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFPeetsalu2024" class="citation web cs1">Peetsalu, Robert (2024-12-08). <a rel="nofollow" class="external text" href="https://www.reddit.com/r/AskEconomics/comments/1h9ornh/how_would_this_market_share_tax_affect_a_countrys/?rdt=40010">"How would this market share tax affect a country's economy?"</a>. <i>r/AskEconomics</i>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=r%2FAskEconomics&rft.atitle=How+would+this+market+share+tax+affect+a+country%27s+economy%3F&rft.date=2024-12-08&rft.aulast=Peetsalu&rft.aufirst=Robert&rft_id=https%3A%2F%2Fwww.reddit.com%2Fr%2FAskEconomics%2Fcomments%2F1h9ornh%2Fhow_would_this_market_share_tax_affect_a_countrys%2F%3Frdt%3D40010&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-41"><span class="mw-cite-backlink"><b><a href="#cite_ref-41">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://www.fccaviation.com/regulation/france/noise-tax">"French Noise Tax"</a>. <i>FCC Aviation</i>. <a rel="nofollow" class="external text" href="https://web.archive.org/web/20231207094432/https://www.fccaviation.com/regulation/france/noise-tax">Archived</a> from the original on 7 December 2023<span class="reference-accessdate">. Retrieved <span class="nowrap">29 April</span> 2024</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=FCC+Aviation&rft.atitle=French+Noise+Tax&rft_id=https%3A%2F%2Fwww.fccaviation.com%2Fregulation%2Ffrance%2Fnoise-tax&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-42"><span class="mw-cite-backlink"><b><a href="#cite_ref-42">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://www.ecologie.gouv.fr/sites/default/files/Notice%20TNSA-ANG_2021.pdf">"TAX ON AIR TRANSPORT NOISE POLLUTION - APRIL 2021"</a> <span class="cs1-format">(PDF)</span>. FISCAL ONE-STOP OFFICE FOR AIRPORT TAXES. April 2021<span class="reference-accessdate">. Retrieved <span class="nowrap">29 April</span> 2024</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=TAX+ON+AIR+TRANSPORT+NOISE+POLLUTION+-+APRIL+2021&rft.pub=FISCAL+ONE-STOP+OFFICE+FOR+AIRPORT+TAXES&rft.date=2021-04&rft_id=https%3A%2F%2Fwww.ecologie.gouv.fr%2Fsites%2Fdefault%2Ffiles%2FNotice%2520TNSA-ANG_2021.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-43"><span class="mw-cite-backlink"><b><a href="#cite_ref-43">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://www.fccaviation.com/regulation/italy/iresa#:~:text=IRESA%2C%20or%20Imposta%20Regionale%20sulle,airports%20in%20certain%20Italian%20regions.">"IRESA"</a>. <i>FCC Aviation</i>. <a rel="nofollow" class="external text" href="https://web.archive.org/web/20230925102006/https://www.fccaviation.com/regulation/italy/iresa#:~:text=IRESA%2C%20or%20Imposta%20Regionale%20sulle,airports%20in%20certain%20Italian%20regions.">Archived</a> from the original on 25 September 2023<span class="reference-accessdate">. Retrieved <span class="nowrap">29 April</span> 2024</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=FCC+Aviation&rft.atitle=IRESA&rft_id=https%3A%2F%2Fwww.fccaviation.com%2Fregulation%2Fitaly%2Firesa%23%3A~%3Atext%3DIRESA%252C%2520or%2520Imposta%2520Regionale%2520sulle%2Cairports%2520in%2520certain%2520Italian%2520regions.&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-44"><span class="mw-cite-backlink"><b><a href="#cite_ref-44">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFDi_Peio2017" class="citation web cs1">Di Peio, Filippo (6 June 2017). <a rel="nofollow" class="external text" href="https://www.lexology.com/library/detail.aspx?g=066b6036-1ccf-467b-bb2a-1027504f9124">"News about IRESA, the Italian noise emissions tax for civil aircraft"</a>. <i>Lexology</i>. <a rel="nofollow" class="external text" href="https://web.archive.org/web/20210920152506/https://www.lexology.com/library/detail.aspx?g=066b6036-1ccf-467b-bb2a-1027504f9124">Archived</a> from the original on 20 September 2021<span class="reference-accessdate">. Retrieved <span class="nowrap">29 April</span> 2024</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=Lexology&rft.atitle=News+about+IRESA%2C+the+Italian+noise+emissions+tax+for+civil+aircraft&rft.date=2017-06-06&rft.aulast=Di+Peio&rft.aufirst=Filippo&rft_id=https%3A%2F%2Fwww.lexology.com%2Flibrary%2Fdetail.aspx%3Fg%3D066b6036-1ccf-467b-bb2a-1027504f9124&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-45"><span class="mw-cite-backlink"><b><a href="#cite_ref-45">^</a></b></span> <span class="reference-text">Pigou, A.C., (1954) Some Aspects of the Welfare State. Diogenes 7 (6).</span> </li> <li id="cite_note-46"><span class="mw-cite-backlink"><b><a href="#cite_ref-46">^</a></b></span> <span class="reference-text">Baumol, William J. (1972). "On Taxation and the Control of Externalities," The American Economic Review, 62(3): 307–322.</span> </li> <li id="cite_note-47"><span class="mw-cite-backlink"><b><a href="#cite_ref-47">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFVaughn1980" class="citation journal cs1">Vaughn, Karen (January 1980). "Does it Matter That Costs Are Subjective?". <i>Southern Economic Journal</i>. <b>46</b> (3): <span class="nowrap">702–</span>715. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.2307%2F1057140">10.2307/1057140</a>. <a href="/wiki/JSTOR_(identifier)" class="mw-redirect" title="JSTOR (identifier)">JSTOR</a> <a rel="nofollow" class="external text" href="https://www.jstor.org/stable/1057140">1057140</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Southern+Economic+Journal&rft.atitle=Does+it+Matter+That+Costs+Are+Subjective%3F&rft.volume=46&rft.issue=3&rft.pages=%3Cspan+class%3D%22nowrap%22%3E702-%3C%2Fspan%3E715&rft.date=1980-01&rft_id=info%3Adoi%2F10.2307%2F1057140&rft_id=https%3A%2F%2Fwww.jstor.org%2Fstable%2F1057140%23id-name%3DJSTOR&rft.aulast=Vaughn&rft.aufirst=Karen&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-48"><span class="mw-cite-backlink"><b><a href="#cite_ref-48">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFBoettke2012" class="citation book cs1">Boettke, Peter (2012). <i>Living Economics</i>. The Independent Institute, Universidad Francisco Marroquin. pp. <span class="nowrap">254–</span>255. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/9781598130751" title="Special:BookSources/9781598130751"><bdi>9781598130751</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=Living+Economics&rft.pages=%3Cspan+class%3D%22nowrap%22%3E254-%3C%2Fspan%3E255&rft.pub=The+Independent+Institute%2C+Universidad+Francisco+Marroquin&rft.date=2012&rft.isbn=9781598130751&rft.aulast=Boettke&rft.aufirst=Peter&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-49"><span class="mw-cite-backlink"><b><a href="#cite_ref-49">^</a></b></span> <span class="reference-text">Coase, Ronald (1960), "The Problem of Social Cost", <i>Journal of Law and Economics</i>, 3 (1): 1–44.</span> </li> <li id="cite_note-50"><span class="mw-cite-backlink"><b><a href="#cite_ref-50">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFTietenberg1974" class="citation journal cs1"><a href="/wiki/Thomas_H._Tietenberg" title="Thomas H. Tietenberg">Tietenberg, T.H.</a> (1974-06-01). "On Taxation and the Control of Externalities: Comment". <i>The American Economic Review</i>. <b>64</b> (3): <span class="nowrap">462–</span>466. <a href="/wiki/ISSN_(identifier)" class="mw-redirect" title="ISSN (identifier)">ISSN</a> <a rel="nofollow" class="external text" href="https://search.worldcat.org/issn/0002-8282">0002-8282</a>. <a href="/wiki/JSTOR_(identifier)" class="mw-redirect" title="JSTOR (identifier)">JSTOR</a> <a rel="nofollow" class="external text" href="https://www.jstor.org/stable/1808900">1808900</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=The+American+Economic+Review&rft.atitle=On+Taxation+and+the+Control+of+Externalities%3A+Comment&rft.volume=64&rft.issue=3&rft.pages=%3Cspan+class%3D%22nowrap%22%3E462-%3C%2Fspan%3E466&rft.date=1974-06-01&rft_id=https%3A%2F%2Fwww.jstor.org%2Fstable%2F1808900%23id-name%3DJSTOR&rft.issn=0002-8282&rft.aulast=Tietenberg&rft.aufirst=T.H.&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-51"><span class="mw-cite-backlink"><b><a href="#cite_ref-51">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFBaumol1974" class="citation journal cs1">Baumol, William J. (1974-06-01). "On Taxation and the Control of Externalities: Reply". <i>The American Economic Review</i>. <b>64</b> (3): 472. <a href="/wiki/ISSN_(identifier)" class="mw-redirect" title="ISSN (identifier)">ISSN</a> <a rel="nofollow" class="external text" href="https://search.worldcat.org/issn/0002-8282">0002-8282</a>. <a href="/wiki/JSTOR_(identifier)" class="mw-redirect" title="JSTOR (identifier)">JSTOR</a> <a rel="nofollow" class="external text" href="https://www.jstor.org/stable/1808902">1808902</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=The+American+Economic+Review&rft.atitle=On+Taxation+and+the+Control+of+Externalities%3A+Reply&rft.volume=64&rft.issue=3&rft.pages=472&rft.date=1974-06-01&rft_id=https%3A%2F%2Fwww.jstor.org%2Fstable%2F1808902%23id-name%3DJSTOR&rft.issn=0002-8282&rft.aulast=Baumol&rft.aufirst=William+J.&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span></span> </li> <li id="cite_note-52"><span class="mw-cite-backlink"><b><a href="#cite_ref-52">^</a></b></span> <span class="reference-text">Barthold, Thomas A. (1994). "Issues in the Design of Environmental Excise Taxes", <i>The Journal of Economic Perspectives</i>, 8(1): 133–151.</span> </li> </ol></div></div> <div class="mw-heading mw-heading2"><h2 id="Further_reading">Further reading</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Pigouvian_tax&action=edit&section=25" title="Edit section: Further reading"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <ul><li><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFMankiw2001" class="citation cs2"><a href="/wiki/N._Gregory_Mankiw" class="mw-redirect" title="N. Gregory Mankiw">Mankiw, N. Gregory</a> (2001), <span class="id-lock-registration" title="Free registration required"><a rel="nofollow" class="external text" href="https://archive.org/details/lccn_00102499/page/216"><i>Principles of Economics</i></a></span> (second ed.), Fort Worth: Harcourt College Publishers, p. 216, <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/978-0-03-025951-7" title="Special:BookSources/978-0-03-025951-7"><bdi>978-0-03-025951-7</bdi></a></cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=Principles+of+Economics&rft.place=Fort+Worth&rft.pages=216&rft.edition=second&rft.pub=Harcourt+College+Publishers&rft.date=2001&rft.isbn=978-0-03-025951-7&rft.aulast=Mankiw&rft.aufirst=N.+Gregory&rft_id=https%3A%2F%2Farchive.org%2Fdetails%2Flccn_00102499%2Fpage%2F216&rfr_id=info%3Asid%2Fen.wikipedia.org%3APigouvian+tax" class="Z3988"></span>.</li> <li>Pigou, A.C. <a rel="nofollow" class="external text" href="http://www.econlib.org/library/NPDBooks/Pigou/pgEW20.html#Part%20II,%20Chapter%209%7CPart">II, Chapter IX: Divergences Between Marginal Social Net Product and Marginal Private Net Product</a> in <i>The Economics of Welfare</i> (1932)</li></ul> <div class="mw-heading mw-heading2"><h2 id="External_links">External links</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Pigouvian_tax&action=edit&section=26" title="Edit section: External links"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <ul><li><a rel="nofollow" class="external text" href="http://econblog.aplia.com/2006/10/cheap-gas-hurts.html">Cheap Gas Hurts (from a welfare analysis perspective)</a> from <a href="/wiki/Aplia" title="Aplia">Aplia</a> Econ Blog</li></ul>    </div><noscript><img src="https://login.wikimedia.org/wiki/Special:CentralAutoLogin/start?useformat=desktop&type=1x1&usesul3=0" alt="" width="1" height="1" style="border: none; position: absolute;"></noscript> <div class="printfooter" data-nosnippet="">Retrieved from "<a dir="ltr" href="https://en.wikipedia.org/w/index.php?title=Pigouvian_tax&oldid=1278498059">https://en.wikipedia.org/w/index.php?title=Pigouvian_tax&oldid=1278498059</a>"</div></div> <div id="catlinks" class="catlinks" data-mw="interface"><div id="mw-normal-catlinks" class="mw-normal-catlinks"><a href="/wiki/Help:Category" title="Help:Category">Categories</a>: <ul><li><a href="/wiki/Category:Market_failure" title="Category:Market failure">Market failure</a></li><li><a href="/wiki/Category:Environmental_tax" title="Category:Environmental tax">Environmental tax</a></li><li><a href="/wiki/Category:Environmental_economics" title="Category:Environmental economics">Environmental economics</a></li><li><a href="/wiki/Category:Ecological_economics" title="Category:Ecological economics">Ecological economics</a></li><li><a href="/wiki/Category:1920_in_economic_history" title="Category:1920 in economic history">1920 in economic history</a></li></ul></div><div id="mw-hidden-catlinks" class="mw-hidden-catlinks mw-hidden-cats-hidden">Hidden categories: <ul><li><a href="/wiki/Category:Articles_with_short_description" title="Category:Articles with short description">Articles with short description</a></li><li><a href="/wiki/Category:Short_description_matches_Wikidata" title="Category:Short description matches Wikidata">Short description matches Wikidata</a></li><li><a href="/wiki/Category:Wikipedia_articles_with_style_issues_from_April_2016" title="Category:Wikipedia articles with style issues from April 2016">Wikipedia articles with style issues from April 2016</a></li><li><a href="/wiki/Category:All_articles_with_style_issues" title="Category:All articles with style issues">All articles with style issues</a></li><li><a href="/wiki/Category:All_articles_with_failed_verification" title="Category:All articles with failed verification">All articles with failed verification</a></li><li><a href="/wiki/Category:Articles_with_failed_verification_from_June_2013" title="Category:Articles with failed verification from June 2013">Articles with failed verification from June 2013</a></li><li><a href="/wiki/Category:All_articles_with_unsourced_statements" title="Category:All articles with unsourced statements">All articles with unsourced statements</a></li><li><a href="/wiki/Category:Articles_with_unsourced_statements_from_May_2012" title="Category:Articles with unsourced statements from May 2012">Articles with unsourced statements from May 2012</a></li><li><a href="/wiki/Category:Articles_needing_additional_references_from_February_2020" title="Category:Articles needing additional references from February 2020">Articles needing additional references from February 2020</a></li><li><a href="/wiki/Category:All_articles_needing_additional_references" title="Category:All articles needing additional references">All articles needing additional references</a></li><li><a href="/wiki/Category:Articles_with_excerpts" title="Category:Articles with excerpts">Articles with excerpts</a></li><li><a href="/wiki/Category:Articles_with_unsourced_statements_from_November_2012" title="Category:Articles with unsourced statements from November 2012">Articles with unsourced statements from November 2012</a></li></ul></div></div> </div> </main> </div> <div class="mw-footer-container"> <footer id="footer" class="mw-footer" > <ul id="footer-info"> <li id="footer-info-lastmod"> This page was last edited on 2 March 2025, at 20:48<span class="anonymous-show"> (UTC)</span>.</li> <li id="footer-info-copyright">Text is available under the <a href="/wiki/Wikipedia:Text_of_the_Creative_Commons_Attribution-ShareAlike_4.0_International_License" title="Wikipedia:Text of the Creative Commons Attribution-ShareAlike 4.0 International License">Creative Commons Attribution-ShareAlike 4.0 License</a>; additional terms may apply. By using this site, you agree to the <a href="https://foundation.wikimedia.org/wiki/Special:MyLanguage/Policy:Terms_of_Use" class="extiw" title="foundation:Special:MyLanguage/Policy:Terms of Use">Terms of Use</a> and <a href="https://foundation.wikimedia.org/wiki/Special:MyLanguage/Policy:Privacy_policy" class="extiw" title="foundation:Special:MyLanguage/Policy:Privacy policy">Privacy Policy</a>. Wikipedia® is a registered trademark of the <a rel="nofollow" class="external text" href="https://wikimediafoundation.org/">Wikimedia Foundation, Inc.</a>, a non-profit organization.</li> </ul> <ul id="footer-places"> <li id="footer-places-privacy"><a href="https://foundation.wikimedia.org/wiki/Special:MyLanguage/Policy:Privacy_policy">Privacy policy</a></li> <li id="footer-places-about"><a href="/wiki/Wikipedia:About">About Wikipedia</a></li> <li id="footer-places-disclaimers"><a href="/wiki/Wikipedia:General_disclaimer">Disclaimers</a></li> <li id="footer-places-contact"><a href="//en.wikipedia.org/wiki/Wikipedia:Contact_us">Contact Wikipedia</a></li> <li id="footer-places-wm-codeofconduct"><a href="https://foundation.wikimedia.org/wiki/Special:MyLanguage/Policy:Universal_Code_of_Conduct">Code of Conduct</a></li> <li id="footer-places-developers"><a href="https://developer.wikimedia.org">Developers</a></li> <li id="footer-places-statslink"><a href="https://stats.wikimedia.org/#/en.wikipedia.org">Statistics</a></li> <li id="footer-places-cookiestatement"><a href="https://foundation.wikimedia.org/wiki/Special:MyLanguage/Policy:Cookie_statement">Cookie statement</a></li> <li id="footer-places-mobileview"><a href="//en.m.wikipedia.org/w/index.php?title=Pigouvian_tax&mobileaction=toggle_view_mobile" class="noprint stopMobileRedirectToggle">Mobile view</a></li> </ul> <ul id="footer-icons" class="noprint"> <li id="footer-copyrightico"><a href="https://wikimediafoundation.org/" class="cdx-button cdx-button--fake-button cdx-button--size-large cdx-button--fake-button--enabled"><picture><source media="(min-width: 500px)" srcset="/static/images/footer/wikimedia-button.svg" width="84" height="29"><img src="/static/images/footer/wikimedia.svg" width="25" height="25" alt="Wikimedia Foundation" lang="en" loading="lazy"></picture></a></li> <li id="footer-poweredbyico"><a href="https://www.mediawiki.org/" class="cdx-button cdx-button--fake-button cdx-button--size-large cdx-button--fake-button--enabled"><picture><source media="(min-width: 500px)" srcset="/w/resources/assets/poweredby_mediawiki.svg" width="88" height="31"><img src="/w/resources/assets/mediawiki_compact.svg" alt="Powered by MediaWiki" lang="en" width="25" height="25" loading="lazy"></picture></a></li> </ul> </footer> </div> </div> </div> <div class="vector-header-container vector-sticky-header-container"> <div id="vector-sticky-header" class="vector-sticky-header"> <div class="vector-sticky-header-start"> <div class="vector-sticky-header-icon-start vector-button-flush-left vector-button-flush-right" aria-hidden="true"> <button class="cdx-button cdx-button--weight-quiet cdx-button--icon-only vector-sticky-header-search-toggle" tabindex="-1" data-event-name="ui.vector-sticky-search-form.icon"><span class="vector-icon mw-ui-icon-search mw-ui-icon-wikimedia-search"></span> <span>Search</span> </button> </div> <div role="search" class="vector-search-box-vue vector-search-box-show-thumbnail vector-search-box"> <div class="vector-typeahead-search-container"> <div class="cdx-typeahead-search cdx-typeahead-search--show-thumbnail"> <form action="/w/index.php" id="vector-sticky-search-form" class="cdx-search-input cdx-search-input--has-end-button"> <div class="cdx-search-input__input-wrapper" data-search-loc="header-moved"> <div class="cdx-text-input cdx-text-input--has-start-icon"> <input class="cdx-text-input__input" type="search" name="search" placeholder="Search Wikipedia"> <span class="cdx-text-input__icon cdx-text-input__start-icon"></span> </div> <input type="hidden" name="title" value="Special:Search"> </div> <button class="cdx-button cdx-search-input__end-button">Search</button> </form> </div> </div> </div> <div class="vector-sticky-header-context-bar"> <nav aria-label="Contents" class="vector-toc-landmark"> <div id="vector-sticky-header-toc" class="vector-dropdown mw-portlet mw-portlet-sticky-header-toc vector-sticky-header-toc vector-button-flush-left" > <input type="checkbox" id="vector-sticky-header-toc-checkbox" role="button" aria-haspopup="true" data-event-name="ui.dropdown-vector-sticky-header-toc" class="vector-dropdown-checkbox " aria-label="Toggle the table of contents" > <label id="vector-sticky-header-toc-label" for="vector-sticky-header-toc-checkbox" class="vector-dropdown-label cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only " aria-hidden="true" ><span class="vector-icon mw-ui-icon-listBullet mw-ui-icon-wikimedia-listBullet"></span> <span class="vector-dropdown-label-text">Toggle the table of contents</span> </label> <div class="vector-dropdown-content"> <div id="vector-sticky-header-toc-unpinned-container" class="vector-unpinned-container"> </div> </div> </div> </nav> <div class="vector-sticky-header-context-bar-primary" aria-hidden="true" ><span class="mw-page-title-main">Pigouvian tax</span></div> </div> </div> <div class="vector-sticky-header-end" aria-hidden="true"> <div class="vector-sticky-header-icons"> <a href="#" class="cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only" id="ca-talk-sticky-header" tabindex="-1" data-event-name="talk-sticky-header"><span class="vector-icon mw-ui-icon-speechBubbles mw-ui-icon-wikimedia-speechBubbles"></span> <span></span> </a> <a href="#" class="cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only" id="ca-subject-sticky-header" tabindex="-1" data-event-name="subject-sticky-header"><span class="vector-icon mw-ui-icon-article mw-ui-icon-wikimedia-article"></span> <span></span> </a> <a href="#" class="cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only" id="ca-history-sticky-header" tabindex="-1" data-event-name="history-sticky-header"><span class="vector-icon mw-ui-icon-wikimedia-history mw-ui-icon-wikimedia-wikimedia-history"></span> <span></span> </a> <a href="#" class="cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only mw-watchlink" id="ca-watchstar-sticky-header" tabindex="-1" data-event-name="watch-sticky-header"><span class="vector-icon mw-ui-icon-wikimedia-star mw-ui-icon-wikimedia-wikimedia-star"></span> <span></span> </a> <a href="#" class="cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only" id="ca-edit-sticky-header" tabindex="-1" data-event-name="wikitext-edit-sticky-header"><span class="vector-icon mw-ui-icon-wikimedia-wikiText mw-ui-icon-wikimedia-wikimedia-wikiText"></span> <span></span> </a> <a href="#" class="cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only" id="ca-ve-edit-sticky-header" tabindex="-1" data-event-name="ve-edit-sticky-header"><span class="vector-icon mw-ui-icon-wikimedia-edit mw-ui-icon-wikimedia-wikimedia-edit"></span> <span></span> </a> <a href="#" class="cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only" id="ca-viewsource-sticky-header" tabindex="-1" data-event-name="ve-edit-protected-sticky-header"><span class="vector-icon mw-ui-icon-wikimedia-editLock mw-ui-icon-wikimedia-wikimedia-editLock"></span> <span></span> </a> </div> <div class="vector-sticky-header-buttons"> <button class="cdx-button cdx-button--weight-quiet mw-interlanguage-selector" id="p-lang-btn-sticky-header" tabindex="-1" data-event-name="ui.dropdown-p-lang-btn-sticky-header"><span class="vector-icon mw-ui-icon-wikimedia-language mw-ui-icon-wikimedia-wikimedia-language"></span> <span>26 languages</span> </button> <a href="#" class="cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--action-progressive" id="ca-addsection-sticky-header" tabindex="-1" data-event-name="addsection-sticky-header"><span class="vector-icon mw-ui-icon-speechBubbleAdd-progressive mw-ui-icon-wikimedia-speechBubbleAdd-progressive"></span> <span>Add topic</span> </a> </div> <div class="vector-sticky-header-icon-end"> <div class="vector-user-links"> </div> </div> </div> </div> </div> <div class="mw-portlet mw-portlet-dock-bottom emptyPortlet" id="p-dock-bottom"> <ul> </ul> </div> <script>(RLQ=window.RLQ||[]).push(function(){mw.config.set({"wgHostname":"mw-web.codfw.main-76d4c66f66-v44n7","wgBackendResponseTime":195,"wgPageParseReport":{"limitreport":{"cputime":"0.756","walltime":"0.906","ppvisitednodes":{"value":3488,"limit":1000000},"postexpandincludesize":{"value":157124,"limit":2097152},"templateargumentsize":{"value":2781,"limit":2097152},"expansiondepth":{"value":12,"limit":100},"expensivefunctioncount":{"value":11,"limit":500},"unstrip-depth":{"value":1,"limit":20},"unstrip-size":{"value":199902,"limit":5000000},"entityaccesscount":{"value":0,"limit":400},"timingprofile":["100.00% 773.738 1 -total"," 41.19% 318.729 1 Template:Reflist"," 26.58% 205.649 21 Template:Cite_journal"," 16.36% 126.560 1 Template:Taxation"," 15.85% 122.657 1 Template:Sidebar_with_collapsible_lists"," 11.36% 87.889 1 Template:Excerpt"," 8.80% 68.087 4 Template:Sidebar"," 8.55% 66.180 1 Template:Short_description"," 6.85% 52.998 12 Template:Cite_web"," 6.62% 51.232 3 Template:Fix"]},"scribunto":{"limitreport-timeusage":{"value":"0.492","limit":"10.000"},"limitreport-memusage":{"value":8300225,"limit":52428800},"limitreport-logs":"table#1 {\n [\"size\"] = \"tiny\",\n}\ntable#1 {\n [\"size\"] = \"tiny\",\n}\n"},"cachereport":{"origin":"mw-api-ext.codfw.main-779b98c79f-lsqxt","timestamp":"20250302204848","ttl":2592000,"transientcontent":false}}});});</script> <script type="application/ld+json">{"@context":"https:\/\/schema.org","@type":"Article","name":"Pigouvian tax","url":"https:\/\/en.wikipedia.org\/wiki\/Pigouvian_tax","sameAs":"http:\/\/www.wikidata.org\/entity\/Q931921","mainEntity":"http:\/\/www.wikidata.org\/entity\/Q931921","author":{"@type":"Organization","name":"Contributors to Wikimedia projects"},"publisher":{"@type":"Organization","name":"Wikimedia Foundation, Inc.","logo":{"@type":"ImageObject","url":"https:\/\/www.wikimedia.org\/static\/images\/wmf-hor-googpub.png"}},"datePublished":"2003-11-19T07:07:56Z","dateModified":"2025-03-02T20:48:47Z","headline":"tax on activities generating negative externalities"}</script> </body> </html>