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From my very limited understanding pigouvian taxes do not work well if they're dealing with leaky faucets. That is, if I can just drive across state lines from
by SirensOfTitan 8y ago
From my very limited understanding pigouvian taxes do not work well if they're dealing with leaky faucets. That is, if I can just drive across state lines from New York to New Jersey to buy plastic bags, New York's plastic tax wouldn't work too well.
- ehsankia 8y agoI don't really understand the scenario. You're at the grocery store, and you would drive to New Jersey to get a plastic bag? If people can actually think of bringing plastic bags when going shopping, we wouldn't be in this situation in the first place.
- Wowfunhappy 8y agoI think the GP's argument is that retailers (not consumers) would cross state lines to buy plastic bags for their stores. There are pretty simple ways around this, though. For instance, tax based on number of plastics handed out, not the number purchased.