Question

Is this a Pigovian Tax?

If the govenment were to impose a fee of $10,000 for each unit of air pollution released by a steel mill, this policy would be considered:

A) A Subsidy
B) A Regulation
C) A Pigovian tax
D) A Command-and-Control Policy

A know it is not a subsidy or a regulation.

The way I underdstand a Command-and-Control Policy is an example of "you are forbidden to dump garbage in the reiver".

Then if would be a Pigovian tax correct?

Answer 1

http://www.investopedia.com/terms/p/pigoviantax.asp

Answer 2

Are you telling me it ia a Pigovian tax?

Answer 3

Yes.