Pigouvian tax

British

/ pɪˈɡuːvɪən /

noun

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

Etymology

Origin of Pigouvian tax

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

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

One great thing about the gas tax is that it’s what economists call a Pigouvian tax: a levy on an activity with significant negative externalities.

From Slate • Mar. 31, 2021

In that regard, the FTT is a Pigouvian tax: a tax that offsets the significant, external costs imposed on the larger society by activities like smoking or polluting.

From Forbes • Apr. 24, 2015

A financial transaction tax is a Pigouvian tax!

From Forbes • Apr. 24, 2015

But to minimise the systemic risks of this debt Mr Cochrane proposes a Pigouvian tax.

From Economist • Jun. 5, 2014

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023