🎩 Who's Behind It?

Ever heard of A.C. Pigou? He was the genius who proposed that if a company pollutes, they should pay for it!

🏭 What's It About?

If a factory produces something and causes pollution (like a smelly cloud of smoke), they have to pay a tax. This makes the factory think twice before polluting!

🧪 Real-world Example: Ever wondered why gas is taxed? In the USA, there are Pigovian taxes on gasoline to cover the pollution cars cause. It's like a mini-punishment for making the air dirty!

🌲 What's It About?

A tax on carbon emissions (from burning fossil fuels like oil and coal) encourages people to use greener energy. The more carbon you produce, the more tax you pay!

Real-world Example: In British Columbia, Canada, they have a carbon tax that's decreased fuel consumption by 19% compared to the rest of Canada! Talk about motivation to go green!

🎮 How It Works?

Imagine pollution permits as trading cards. The government gives out a limited number, and companies can buy, sell, or trade them. If a company can reduce pollution cheaply, it might sell its permits to others.

 Real-world Example: The EU has a system like this, and it has helped reduce greenhouse gas emissions by 22% between 1990 and 2015. It's like trading Pokemon cards, but for the environment!