Why are Pigovian taxes preferred to regulatory policies as methods to remedy negative externalities?

Pigovian Taxes

Taxes imposed on activities that generate negative externalities, aiming to correct market inefficiencies and reduce unwanted behaviors.

Regulatory Policies

Rules or guidelines issued by governmental agencies to control or direct economic or social activities.

Negative Externalities

Economic activities that impose a cost on third parties who are not directly involved in the activity, such as pollution.