posted by G on .
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?
Are you telling me it ia a Pigovian tax?