four. Pigouvian tax: It's a tax that is definitely levied on any sector exercise that generates unfavorable externalities. This tax is billed so that you can right the inefficient industry results brought about mainly because of the presence of a detrimental externality
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Detrimental generation externality is really an externality due to a organization’s production approach which results in reduction from the nicely-staying of the unrelated third party.
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