What the new loss and damage fund needs for public approval: choice experimental evidence from Austria

The severity of extreme weather events is increasing due to climate change. While industrialized nations have historically contributed the most to greenhouse gas emissions and are thus considered the primary polluters, the adverse impacts of climate change are disproportionately felt in low-income countries with limited capacity to cope. These regions are generally less resilient to extreme weather, resulting in significant damage. Many vulnerable countries lack the resources to manage these losses independently, necessitating international financial support. For over 30 years, the allocation of these costs has been a central issue at UN climate conferences. At COP 27 and COP 28, an international fund was established to address climate-induced losses and damages. However, key details regarding payment obligations and the distribution of funds remain unresolved. Securing consistent funding requires public approval in donor countries. To understand public preferences, we conducted a representative choice experiment in Austria exploring various financing options for such a fund. Our findings suggest that public support is higher if contributions are based on principles of responsibility rather than voluntary donations, with a preference for disaster relief payments. Additionally, respondents favored a maximum monthly contribution of 30 € per capita and prioritized funding for slow-onset events over rapid-onset events.