This study explores how taxes can be used to address the harms caused by pollution or other negative effects on society. It suggests that when companies can't pay for damages they cause, making someone else (like a guarantor) financially responsible can still help control these problems. The researchers found that if companies have good financial structures and strong governance, taxes should match the harm caused more closely. Additionally, they discovered that when the responsible guarantor may also not have enough money, extending liability could create more issues. This study offers new insights into how taxes can be used to make companies take responsibility for their negative impacts on the environment and society.