Arthur Pigou

Arthur Pigou was a British economist known for his work on welfare economics and externalities. He introduced the concept of "Pigovian taxes," which are taxes imposed on activities that generate negative externalities, like pollution. The idea is to encourage businesses and individuals to reduce harmful behaviors by making them pay for the societal costs they create. His work laid the groundwork for modern environmental economics and highlighted the importance of government intervention to promote social welfare and correct market failures, where the free market doesn't account for the overall well-being of society.