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Carbon Tax acceptability: A comparative experimental analysis

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  • Lucia Rotaris
  • Alessandro Gardelli

Abstract

Greenhouse gases (GHG) emissions are rising worldwide. Despite the efforts made both at the national and at the international level, new policies are needed in order to effectively reduce the GHG emissions. Command-and-control policies have been frequently adopted, but proved not to suffice to reverse the phenomenon. A carbon tax could make the case, but it is seldom implemented due to its assumed political unpopularity. A contingent valuation experiment is performed in USA and in Italy to analyze this issue. The results show that the policy acceptability is very high and that the median WTP ranges between a minimum of $161 and a maximum of $246, and varies according to the tax revenue use, the respondents? nationality, the respondents? beliefs and knowledge about climate change, and some sociodemographic characteristics. Policy implications of the results obtained are further described in the paper.

Suggested Citation

  • Lucia Rotaris & Alessandro Gardelli, 2018. "Carbon Tax acceptability: A comparative experimental analysis," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2018(1), pages 117-132.
    • Handle: RePEc:fan:efeefe:v:html10.3280/efe2018-001005
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    1. Martin Rabbia, 2023. "Why did Argentina and Uruguay decide to pursue a carbon tax? Fiscal reforms and explicit carbon prices," Review of Policy Research, Policy Studies Organization, vol. 40(2), pages 230-259, March.

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    More about this item

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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