In essence,the corrective tax places a price on the right to pollute.

Question

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A corrective tax, also called a Pigouvian tax, is a tax imposed on activities that generate negative externalities, such as pollution. The purpose of the tax is to correct market failure by incentivizing polluters to reduce their emissions, thus internalizing the cost of pollution. By putting a price on the right to pollute, the tax encourages firms to find ways to reduce pollution by investing in cleaner technologies or reducing their activities that generate pollution.

In Essence,the Corrective Tax Places a Price on the Right