A corrective tax is a financial charge imposed by the government to address negative externalities, which are costs that affect third parties not involved in a transaction. For example, when companies pollute the environment, the societal costs of that pollution are not reflected in the market price of their products. A corrective tax aims to internalize these external costs, encouraging businesses to reduce harmful behaviors. By increasing the cost of activities that generate negative externalities, such as pollution, a corrective tax incentivizes companies and individuals to adopt more environmentally friendly practices. This approach can lead to a more efficient allocation of resources and promote overall societal welfare, benefiting both the economy and the environment.