No. Pigouvian taxes are about putting a price on the social cost of antisocial activities - pollution, congestion, etc.
If I close and seal all my doors and windows and then choose to pump CO2 and other harmful gases into my house, the cost of doing this is largely going to fall on me, and I can probably be trusted to be sensible about how much of this I do. But in the real world, there is no natural mechanism to force me to internalise the costs to the rest of you of pumping out carbon emissions into the atmosphere.
It’s nothing to do with ‘sin’. Pigouvian taxes are about putting the societal price on antisocial behaviour so market forces can function.
No. Pigouvian taxes are about putting a price on the social cost of antisocial activities - pollution, congestion, etc.
If I close and seal all my doors and windows and then choose to pump CO2 and other harmful gases into my house, the cost of doing this is largely going to fall on me, and I can probably be trusted to be sensible about how much of this I do. But in the real world, there is no natural mechanism to force me to internalise the costs to the rest of you of pumping out carbon emissions into the atmosphere.
It’s nothing to do with ‘sin’. Pigouvian taxes are about putting the societal price on antisocial behaviour so market forces can function.