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Pigouvian tax

/ pɪˈɡuːvɪən /

noun

  1. a tax levied to counter an economic negative externality, for example taxing producers of industrial pollution in order to encourage pollution control
“Collins English Dictionary — Complete & Unabridged” 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012


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Word History and Origins

Origin of Pigouvian tax1

C20: named after Arthur Pigou (1877-1959), English economist

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