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Corrective Taxes
Taxes designed to internalize externalities, typically by charging for negative externalities to correct market outcomes.
Internalize
The process of incorporating the cost of externalities into the decision-making processes of relevant parties, often through regulation or market-based incentives.
Corrective Taxes
Taxes designed to correct the market outcomes that are not efficient by themselves, usually by discouraging negative externalities.
Market-Based Solution
Strategies or policies that use market forces and principles to address and solve economic and social issues.
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