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Social Science and Medicine, 44(12), 1861-1869

Consumers report a more robust tobacco presence

28 , 29 Smoking has been associated with increased fibrosis and inflammation activity scores on liver biopsy, as one study of 310 patients with HCV infection demonstrated

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Levying an excise tax in these situations can serve to recoup some of the cost of these externalities and internalize the cost of the externality to the purchase of the product.[11] The Pigouvian concept of internalizing externalities to correct inefficient market outcomes suggests that the size of the excise tax should be equal to the cost of the negative externality