Pigovian Taxes Are Not Always Effective Because

Multiple Choice

Pigovian taxes are not always effective because:

A) they do not directly compensate those who are affected by the externality.
B) it is difficult to identify whether the tax should be imposed on the consumer or the producer.
C) they are only used to benefit those who bear the externalities.
D) None of these are reasons why Pigovian taxes are not always effective.