When a tax is used to encourage or discourage certain a type of behavior is called a?

When a tax is used to encourage or discourage a certain type of behavior, it is referred to as a " Pigovian tax." This type of tax aims to correct negative externalities by making harmful activities more expensive, thereby incentivizing individuals and businesses to alter their behavior. For example, a carbon tax is designed to reduce greenhouse gas emissions by imposing a cost on carbon emissions.