+A Pigovian tax is a levy designed to correct negative [Externalities](/wiki/externality), costs imposed on a third party not involved in the transaction. It aims to internalize these social costs, making producers or consumers account for the full societal impact of activities like [Pollution](/wiki/pollution). Named after economist Arthur C. Pigou, this tax strives for a more efficient and equitable market outcome.
+## See also
+- [Tax](/wiki/tax)
+- [Market Failure](/wiki/market_failure)
+- [Arthur Pigou](/wiki/arthur_pigou)
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