Arthur Cecil Pigou

Arthur Cecil Pigou was a British economist in the early 20th century, known for his work on welfare economics and public policy. He introduced concepts like externalities, which are costs or benefits not reflected in market prices, such as pollution affecting third parties. Pigou argued that governments should intervene through taxes or regulations to address these externalities and promote social welfare. His ideas laid the groundwork for modern environmental economics and influenced policies aimed at correcting market failures, ensuring that economic activities consider their impact on society and the environment.