On the one hand, Piglovian taxes are certainly a useful function in that they may serve to deter a certain type of individual from perpetrating the crime or social offense (e.g. smoking, traffic violation, and alcohol). These individuals would typically be those who are low-risk in nature (not willing to run the risk of being caught), concerned with their money and unable to afford the economic consequent of being caught, rational (in stat economic issues factor higher than the emotional drive of being on a high does), and likely of a certain age (since adolescents, for instance, are more likely to remain undeterred by rational consequences and absorbed in the thrill of the moment.)
On the other hand, the concept of Piglovian taxes seem to me to be no different than that of the many other type of consequences that involve economic consequences just as much as taxing does.
Taking the example of drugs and evaluating the battery of response that America has employed to treat the situation, we see that America's endeavors in this regard are largely counterproductive. US penalties for drug involvement are severe. Third felony drug offences involving Substance I drugs carry a mandatory life sentence without possibility of release. The penalties also involve any sample carrying a certain amount of the proscribed drug, regardless of the material of the sample involved.
Contrast this with the environment that exists in eh Netherlands where drugs are categorized its drugs into