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    Economics A-Level

    Pigouvian Tax

    What Pigouvian Tax means in Economics A-Level, as defined for Pearson Edexcel.

    Definition of Pigouvian Tax

    A tax imposed on an activity that generates negative externalities, intended to correct an inefficient market outcome.
    Pearson Edexcel · Government intervention

    Topics that use Pigouvian Tax

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    Using Pigouvian Tax in the exam

    Definition questions usually carry one or two marks, and examiners look for the precise wording. Write the definition from memory, check it against the version above, and then use the term in a longer answer on the same topic so it sticks.

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