Tag Archives | Control Pollution and Externalities

This article throws light upon the top two measures used to control pollution and externalities. The measures are: 1. Imposing a Pigouvian Tax 2. Environmental Regulation. Measure # Imposing a Pigouvian Tax: A "classical" representation to the externality problem, due to Pigou (1920), is depicted in Figure 1. The horizontal axis denotes output of a competitive industry, say steel, which [...]