If a government imposes a tax on copper production to address the negative externalities associated with its production, what is the primary effect this tax aims to achieve in the market?

When a government imposes a tax on copper production, it aims to reduce the negative effects that come from producing copper, like pollution or environmental damage. This tax increases the cost of producing copper, which encourages producers to either produce less or find cleaner methods. As a result, the market may see a decrease in copper supply, leading to higher prices for consumers. For example, if a copper producer has to pay a tax, they might decide to cut back on how much copper they make, which can help lessen the pollution caused by their operations. In this way, the tax helps to create a balance between economic activity and environmental protection.