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Describe and say what is the use of revenue from Pigouvian tax

Describe and say what is the use of revenue from Pigouvian tax

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Answer : Pigouvian tax is the tax charged when the person has been harming the resources or creating negative externalities.The revenue collected from Pigouvian tax has been utilised for the welfare purpose of the society at large.It increase the resources allocation efficient and properly.For example : Pollution is a negative externality. It harms the other person if person is emitting pollution from factory or vechicles so Pigouvian tax has been charged in order to realised person not to emit pollution as well as for campaign purpose and social welfare that tax revenue has been utilised.

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