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A Pigovian charge (likewise called Pigouvian charge, after financial specialist Arthur C. Pigou) is an expense forced that is equivalent in worth to the negative

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A Pigovian charge (likewise called Pigouvian charge, after financial specialist Arthur C. Pigou) is an expense forced that is equivalent in worth to the negative externality. To completely address the negative externality, the per unit assessment ought to rise to the minimal outside cost.[48] The outcome is that the market result would be decreased to the effective sum. A secondary effect is that income is raised for the public authority, diminishing how much distortionary charges that the public authority should force somewhere else. State run administrations legitimize the utilization of Pigovian charges saying that these assessments assist the market with arriving at a productive result since this duty overcomes any issues between minor social expenses and peripheral private costs

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