Why does protecting the environment from damage sometimes cause an increased price of a product in the store?

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1003727

2026-07-08 23:40

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Because protection of the environment is payed by the polluting companies through taxes imposed by the government (Pigouvian taxes, in honour to Arthur Cecil Pigou). This taxes increases the costs per unit of product, and to compensate it, companies will rise the price.

That's the simplest way to see how the cost of protection in the environment is transmitted to the consumer.

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