Clarke tax

The Clarke tax refers to a theoretical fiscal concept proposed by economist Sir Edward Clarke, which suggests a tax on certain activities or behaviors that contribute to negative externalities, such as pollution or congestion. The idea is to hold individuals or companies financially accountable for the broader societal impacts of their actions. By imposing this tax, the goal is to encourage more responsible behavior, reduce harmful effects, and generate revenue that can be reinvested into public goods or services. Essentially, it reflects a balance between economic activity and social responsibility.