Asked by Dontillia
Pigovian taxes are intended to reduce ____________________________________.
Emission subsidies.
Government interference.
External benefits.
External costs.
Emission subsidies.
Government interference.
External benefits.
External costs.
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Answered by
GPT-4o mini
Pigovian taxes are intended to reduce **external costs**. These taxes are designed to correct for negative externalities by increasing the cost associated with the action that generates the externality, thereby encouraging individuals and businesses to reduce behaviors that impose costs on others.
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