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Increasing the acceptability of carbon taxation: The role of social norms and economic reasoning

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  • Fang, Ximeng
  • Innocenti, Stefania

Abstract

Green transitions require ambitious policy. This poses a political economy challenge. We study how social norms and economic reasoning jointly shape public views towards carbon taxation with uniform redistribution, using a representative survey experiment in the U.S. (N=2,688). Video interventions that correct misperceived norms about climate action and/or explain the policy lead to an initial boost in support that fades away after several months and does not increase environmental donations. However, the combined intervention persistently reduces strong opposition by over 20%, pointing towards the joint roles of different motives in shifting the Overton window for climate policy.

Suggested Citation

  • Fang, Ximeng & Innocenti, Stefania, 2023. "Increasing the acceptability of carbon taxation: The role of social norms and economic reasoning," INET Oxford Working Papers 2023-25, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.
    • Handle: RePEc:amz:wpaper:2023-25
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    File URL: https://www.inet.ox.ac.uk/files/Carbon-tax-acceptance_WP.pdf
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    More about this item

    Keywords

    climate policy; carbon pricing; policy understanding; social norms; pluralistic ignorance; information intervention; survey experiment;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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