Tag: Pigouvian tax

Explain whether or not you think that a Pigouvian carbon tax is a good option for internalizing externalities associated with carbon. Consider economic, social and environmental factors. Are you in favor of a Pigouvian tax in other situations? Choose a carbon tax rate that you feel is appropriate (in dollars per ton) and justify that value.

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Explain the term externality in an economic context in your own words. Provide an example of a positive externality which […]