Question : Which of the following may be classified as a 'Pigouvian tax'?
Option 1: Income tax
Option 2: Carbon tax
Option 3: Corporate tax
Option 4: Long term capital gain tax
Correct Answer: Carbon tax
Solution : The correct option is the Carbon tax.
The carbon tax is a classic example of a Pigouvian tax. It is designed to internalise the external costs associated with carbon emissions and address the negative externality of climate change. By taxing carbon emissions, the government aims to make businesses and individuals take into account the environmental and societal costs of their carbon-intensive activities.
Related Questions
Know More about
Staff Selection Commission Sub Inspector ...
Result | Eligibility | Application | Selection Process | Cutoff | Admit Card | Preparation Tips
Get Updates Brochure
Your Staff Selection Commission Sub Inspector Exam brochure has been successfully mailed to your registered email id “”.
