In 1980, a new critique of Pigovian taxes emerged from Dennis Carlton and Glenn Loury [REF].
Robert Kohn responded to this article in "The Limitations of Pigouvian Taxes as a Long-Run Remedy for Externalities: Comment," saying that a Pigovian tax on pollution emissions can, in fact, create the long-run social optimum without a lump-sum tax-subsidy [REF].