The Pigovian tax reference article from the English Wikipedia on 24-Apr-2004 (provided by Fixed Reference: snapshots of Wikipedia from wikipedia.org)

Pigovian tax

A Pigovian tax is a tax enacted to correct the effects of negative externalities; they are named after economist Arthur Pigou. Unlike most taxes, which are inefficient because they result in a deadweight loss, Pigovian taxes improve overall economic efficiency. Examples of Pigovian taxes include taxes on alcohol, cigarettes, and gasoline.

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