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Please explain- what is a Pigouvian tax?

Could a tax on sugar help tackle public health problems and high levels of obesity?

Could a tax on congestion slow Australia’s carbon emissions?

These are both examples of Pigouvian or sin taxes, which are designed to discourage consumption habits that are bad for society.

Tom Swann, Researcher at the Australia Institute, explains how putting a price on our sins can change social trends.

Story features: Tom Swann, Researcher at the Australia Institute

Image: ‘Your Tax-Dollars (Euros) At Work’ by Matthias Weinberger on Flickr

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