Arthur Cecil Pigou had an interesting idea of how to deal with actions within society that post negative externalities, tax them. Yet excise has existed within the United States since our beginning.

For example, fuel in this country is taxed via excise, and nobody can argue against the effects of fossil fuel combustion engines on pollution totals. Therefore, their use as a consumer staple creates a negative externality. Alcohol is also (in reality) a consumer staple as it is always in demand within our society, yet it does in fact have many negative externailties.

Why is it that cannabis is discriminated upon, as a durable good, that might have a negative externality associated with its use? Would a pigovian tax be financially sufficient to provide those who desire (and find it impossible) to stop using cannabis for recreational use provided rehab?

Do not get me wrong, i love the plant more than anyone. But, would a tax of the plant (produced and sold in a commercial fashion) be an effective and decent compromise to prohibition?
GoldenBoy812 Reviewed by GoldenBoy812 on . Why not a pigovian tax on cannabis...??? Arthur Cecil Pigou had an interesting idea of how to deal with actions within society that post negative externalities, tax them. Yet excise has existed within the United States since our beginning. For example, fuel in this country is taxed via excise, and nobody can argue against the effects of fossil fuel combustion engines on pollution totals. Therefore, their use as a consumer staple creates a negative externality. Alcohol is also (in reality) a consumer staple as it is always in Rating: 5