Meaning of Pigouvian tax | Babel Free
Definitions
A tax on any market activity that generates negative externalities.
Equivalents
Deutsch
Pigou-Steuer
Examples
“Named after economist A.C. Pigou, a Pigouvian tax is a tax levied per unit of pollution emitted. Pigouvian taxes are meant to internalize ‘externalities’, generally understood to be positive or negative side-effects from economic production that are not reflected in the price of production.”
CEFR level
B2
Upper Intermediate
This word is part of the CEFR B2 vocabulary — upper intermediate level.
This word is part of the CEFR B2 vocabulary — upper intermediate level.