The senior economists are stubborn and they design a proposal to improve public health regardless

Pigovian tax is a tax placed on any good which creates negative externalities. like, Like tax on alcohol, cicigarette, other tobacco products. Its increase social benefits or welfare but there are lo of challanges and disadvantages of Pigouvian taxes that make it less useful or attractive. These disadvantages are following as-

1. Pigouvian taxes are regressive (flat) when they impose a harsher burden on the populations with lower incomes compared to those with higher incomes. Like tax on alcohol, cicigarette, other tobacco products increase the burden of thoese people who earn less. In the poor and developing countries where a large number of people are living under poverty, this affect negatively. If we talk about the US the most of the young people and other people use these products. If the government impose this tax then either they consume same or less. Icse of consuming in the same amount, it will increase burden on consumer and in case of less consuming it will decrease profitibility of the firm that will negatively affect the people who are working their and owner also. It can increase job cuts in these sectors.

2. How much tax is sufficient is a big issue. If the government impose higher or less then it will not fulfill the objective and increase burden on the society.

3. It will increase the problem of tax evasion.  A tax on good can create an incentive to find illegal methods that will negatively affect the expected tax collection amount of the government.

4. Political interference is a big issue and the political parties will impose or pull-out it according to their own benefits that will directly or inderectly affect the benefits of the society and reduce social benefits.

A pigouvian subsidy is a subsidy that is used to encourage behaviour that have positive effects on others who are not involved or society at large. But still have a lot of problems and disadvatages. These disadvantages are following as-

1. It will increase fiscal deficit and increase burden on the government and increase debt burden on the country and the government will increase taxes in the future. So, increasing taxes will increase tax burden on the tax payers.

2. It will miss use of subsidy amount. It is not necessary that beneficieries use this benefits optimally and efficiently. It can increase corruption in the society also. You can see the same in the developing countries.

3.  Subsidies may encourage firms to be inefficient and they come to rely on subsidy rather than improve efficiency. So, if efficiency do not increase then it will negatively affect the productivity that will cost and increasing cost will decrease social benefits.

4.How much tax is sufficient is a big issue. If subsidy is not suuficient then it will not give the expected result and it could increase social cost compare to social benefits.

So, i think a Pigouvian tax or a Pigouvian subsidy is not a good idea and economist should think about the other options. There are lot of risk and uncertainity are involve in implementing these strategies and there are lot of chances that result could be reverse or opposite than expectation.