Effectiveness, earmarking and labeling: testing theacceptability of carbon taxes with survey data

Baranzini, Andrea and Carattini, Stefano (2017) Effectiveness, earmarking and labeling: testing theacceptability of carbon taxes with survey data. Environmental Economics and Policy Studies, 19 (1). pp. 197-227. ISSN 1432-847X

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Abstract

This paper analyzes the drivers of carbon taxes acceptability with survey data and a randomized labeling treatment. Based on a sample of more than 300 individuals, it assesses the effect on acceptability of specific policy designs and individuals’ perceptions of carbon taxes advantages and disadvantages. We find that the lack of perception of primary and ancillary benefits is one of the main barriers to the acceptability of carbon taxes. In addition, policy design matters for acceptability and in particular earmarking fiscal revenues for environmental purposes can lead to larger support. We also find an effect of labeling, comparing the wording “climate contribution” with “carbon tax”. We argue that proper policy design coupled with effective communication on the effects of carbon taxes may lead to a substantial improvement in acceptability.

Item Type:	Article
Official URL:	http://link.springer.com/journal/volumesAndIssues/...
Additional Information:	© 2016 The Authors © CC BY 4.0
Divisions:	Grantham Research Institute
Subjects:	G Geography. Anthropology. Recreation > GE Environmental Sciences G Geography. Anthropology. Recreation > GF Human ecology. Anthropogeography H Social Sciences > HC Economic History and Conditions H Social Sciences > HJ Public Finance J Political Science > JA Political science (General)
JEL classification:	D - Microeconomics > D7 - Analysis of Collective Decision-Making > D72 - Economic Models of Political Processes: Rent-Seeking, Elections, Legislatures, and Voting Behavior H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities; Redistributive Effects; Environmental Taxes and Subsidies Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4 - Energy > Q48 - Government Policy Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q52 - Pollution Control Costs; Distributional Effects; Employment Effects Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q58 - Government Policy
Date Deposited:	02 Feb 2016 17:55
Last Modified:	12 Dec 2024 01:21
Funders:	Swiss Federal Office of Energy, Bundesamt fÜr Energie
URI:	http://eprints.lse.ac.uk/id/eprint/65212

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