Pigou (Arthur Pigou)

Arthur Pigou was an economist known for his work on how government policies can improve economic outcomes. He introduced the concept of "Pigovian taxes," which are taxes imposed on activities that harm society, such as pollution. These taxes aim to correct market failures by encouraging individuals and companies to reduce negative externalities, aligning private costs with social costs. Essentially, Pigou's ideas help explain how governments can use financial incentives to promote societal well-being and ensure that external costs are properly accounted for in economic decision-making.