Toward a Pigovian State

It is well-known that Congress and regulators do not use Pigovian taxes in order to deter pollution and other negative externalities. It is less well-known, or perhaps not known at all, that regulators possess the authority to impose Pigovian taxes. They just don’t use it. Why not? My colleague Jonathan Masur and I document the regulatory landscape and try to answer this question in a paper now available at SSRN.