How to increase public support for carbon pricing

Andrej Woerner (LMU Munich), Taisuke Imai (University of Osaka), Davide Pace (LMU Munich), Klaus Schmidt (LMU Munich)

The public acceptability of a carbon price depends on how the revenues from carbon pricing are used. In a fully incentivised experiment with a large representative sample of the German population, we compare five different revenue recycling schemes and show that support for a carbon price is maximised by a “Climate Premium” that pays a fixed, uniform, upfront payment to each person. This recycling scheme receives more support than tax and dividend schemes, than using revenues for the general budget of the government, and than earmarking revenues for environmental projects. Furthermore, we show that participants and experts underestimate the public support for carbon pricing.

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Year of publication:	[2023]
Authors:	Woerner, Andrej ; Imai, Taisuke ; Pace, Davide Domenico ; Schmidt, Klaus M.
Publisher:	[München] : Collaborative Research Center Transregio 190
Subject:	carbon pricing \| pigovian taxation \| political support for carbon taxes \| survey experiments \| Treibhausgas-Emissionen \| Greenhouse gas emissions \| Ökosteuer \| Environmental tax \| Emissionshandel \| Emissions trading \| Meinung \| Opinion \| Öffentliche Meinung \| Public opinion