A Pigouvian tax on pollution is designed to collect enough revenue to pay for pollution detection by the government.

Question

Quizplus · Accepted Answer

A Pigouvian tax on pollution is designed to internalize the negative externality of pollution by increasing the cost of polluting activities, thereby encouraging individuals and firms to reduce their pollution levels. The revenue collected from the tax may be used for various purposes, such as funding environmental cleanup or investing in clean technologies, but it is not specifically intended to pay for pollution detection by the government.

A Pigouvian Tax on Pollution Is Designed to Collect Enough