tipsjob (mytipsjob) wrote in business_major,
tipsjob
mytipsjob
business_major

Lindahl tax

A Lindahl tax is a form of taxation in which individuals pay for the provision of a public good according to their marginal benefits. So each individual pays according to his/her marginal benefit derived from the public good. e.g. If A loves scenic beauty and likes to be close to nature he might be ready to pay 5 dollars per day for sitting in a park, whereas a college student who does not visit the park very often will not be ready to pay so much, but might agree to pay 1 dollar. So a person who values the good more pays more.

by http://tipsjobs.com
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