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However, when the nicotine disappears, your body overreacts, leading to a significant imbalance

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

Pramod Mane Meet our expert A Doctor of Medicine (MD) in Pharmacology., currently based in Mumbai, India, Dr Pramod Mane, comes with an experience of more than 20 years of working in Medical Affairs in the Pharmaceuticals & Nutraceutical Industry