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Flat White

Climate Change's 'Pigouvian' tax

27 June 2022

7:00 AM

27 June 2022

7:00 AM

Rod Sims, formerly head of the ACCC, advocates a carbon tax as a ‘Pigouvian’ solution to the global damage which he says is being created as a result of burning coal, gas, and oil.

A ‘Pigouvian’ tax is set at a level where the damage from distorting the economy, which any tax inevitably causes, is offset by the rectification that it brings about.

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