Skip to main content

Pigouvian Tax

Go Search
Home
About
New Atlas
Atlas, A-Z
Atlas Maps
MPP/MPA Programs
Subjects
Core Topics
Illustrative Courses
Topic Encyclopedia
Concept Dictionary
Competencies
Career Tips
IGOs
Best Practices Project


 
PPGPortal > Home > Concept Dictionary > P, Q > Pigouvian Tax
 

Pigouvian Tax 

A tax that serves as a method of internalizing externalities.

(Dwayne Benjamin, Toronto PPG 1002H)

------------------------------------------------------

For example, a tax on a polluter that is equal to the environmental damage that polluter causes forces polluters to pay the entire “social cost” of their production. If the Pigouvian tax is well designed, such a policy can lead to a Pareto efficient level of both production and pollution.

     

Important Notices
© University of Toronto 2008
School of Public Policy and Governance