Pigovian Pollution Taxes

The cluster centers on advocating Pigovian taxes to internalize negative externalities like pollution and carbon emissions, suggesting taxation over bans to incentivize cleaner production and reduce environmental harm.

📉 Falling 0.3x Politics & Society
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Keywords

e.g US IMO CO2 CA I.e encyclopedia.com DOE EU CEOS tax pollution carbon externalities taxes externality taxing negative externalities cost negative

Sample Comments

spangry May 17, 2020 View on HN

Sounds like you're describing Pigovian taxes: https://en.wikipedia.org/wiki/Pigovian_tax

mavhc Apr 18, 2021 View on HN

Tax everything the amount it costs to clean up the pollution it causes, from electricity to food. 2 side effects: people will make things that produce less pollution, and people will make cleaning up pollution cheaper

kozd Mar 19, 2022 View on HN

Seems that taxing negative externalities like carbon emissions would be good start

pouetpouet Apr 8, 2018 View on HN

That's what pigouvian taxes and other steep carbon taxes are for

arbirk Apr 11, 2022 View on HN

But taxing emmissions and lowering other taxes / adding incentives has the same effect with much fewer drawbacks.

01HNNWZ0MV43FF May 21, 2025 View on HN

Taxing anything that can pollute (methane, gasoline, diesel) would let The Hand sort it out

eloff Nov 2, 2019 View on HN

I'm going to beat this drum again. When you have a product with negative externalities, like plastic packaging or fossil fuels, price those into the product through a tax. Then, for bonus points, take that tax revenue and put it towards incentivizing greener solutions. The market will then solve your problem remarkably quickly and efficiently. Markets are fantastic, but they don't account for externalities so we need to add that in through regulation to keep a level playing field.

lend000 May 7, 2023 View on HN

Externality taxes would solve many of today's pressing problems, implemented such that the externality tax is equal to the cost to "undo" whatever externality is imposed (and assuming the government actually spends the money to do so). I.e. we should recognize that we shouldn't outlaw useful and fundamentally positive things that emit CO2 like driving a car, but rather tax the pollution according to the cost to recapture that carbon from the shared environment.

jrpt May 23, 2023 View on HN

Instead of banning things you don't like, pass a carbon tax then to account for externalities. As a bonus, it could be revenue neutral so that your average person actually ends up ahead (while frequent fliers or polluting industries end up paying more).

ajmurmann Jan 26, 2022 View on HN

Well, you should try to establish the societal cost of the negative externality and then tax at that level. The idea isn't to destroy the thing but to make it's price reflect its actual costEdit: "then cost" => "then tax"