ISC SSCP Certification Exam SSCP

In economic theory, pollution is considered a negative externality because it has a negative effect on a party not directly involved in a transaction.

To confront parties with the issue, the economist Arthur Pigou proposed taxing the goods (in this case SY0-101 fossil fuels) which were the source of the negative externality (carbon dioxide) so as to accurately reflect the cost of the goods' production to society, thereby internalizing the costs CISSP associated with the goods' production. A tax on a negative externality is termed a Pigovian tax, and should equal the marginal damage costs.

A carbon tax is an indirect tax — a tax on a transaction — as opposed to a direct tax, which taxes SSCP income. As a result, some American conservatives have supported such a carbon tax because it taxes at a fixed rate, independent of income, which complements their support