Abstract

This essay-analyzes the Pigouvian tax-subsidy policy, reviews the traditional justification and several practical and theoretical criticisms of it, and offers three arguments about the Pigouvian policy and the implied structure of effluent charges (as well as subsidies). First, many proponents of a Pigouvian policy misinterpret its purpose. The tax is not designed to reduce pollution to an ‘acceptable’ level, but to maximize joint production value. Second, Pigouvian effluent charges may violate some constructions of the equal protection clause. Third, these charges may violate, also, some constructions of the due process clause, as well as the ethical criteria that the right of due process implies.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.