Pigou Club

The Pigou Club is a group of economists and policymakers who support taxing activities that cause public harm—like pollution—to encourage more sustainable behavior. Named after economist Arthur Pigou, who studied how taxes can correct market failures, the club advocates for "Pigovian taxes" to reduce negative externalities. For example, taxing carbon emissions aims to incentivize cleaner energy use. The idea is to align private costs with social costs, leading to better outcomes for society and the environment while generating revenue that can be used for public goods.