Taxes can discourage harmful behaviors from "summary" of Economics of the Environment by Robert N. Stavins
One of the key tools in environmental policy is the use of taxes to discourage harmful behaviors. By imposing a tax on activities that generate negative externalities, such as pollution, the government can increase the cost of these activities and provide an incentive for individuals and firms to reduce their impact on the environment. Taxes can be an effective way to internalize the external costs associated with harmful behaviors. When individuals or firms do not bear the full cost of their actions, they have little incentive to change their behavior. By imposing a tax that reflects the true social cost of these activities, the government can ensure that those responsible for the negative externalities pay for the damage they cause....
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