Also know as Pigouvian tax
Step to Calculate
- 先算出对于 Society 的 optimal quantity
- 将 与 相减，也就是算出 cost 检验究竟要花多少钱来弥补
- Then use delta cost multiply by the delta quantity, then it would be the Pigou Tax
One numerical example
The Opposite…
Some economists disagree with Pigou, and among them the most famous one is Coase with his Coase Theorem.
Adds
In the course ECON4008 Law and Economics , we develop the model a little bit.
