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Carbon tax earmarking in a conservative state: Choice experiment evidence from Utah

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  • Tenney, Katelyn
  • Cavlovic, Therese

Abstract

A contingent choice experiment is used to examine preferences for a carbon tax program in Utah, a politically conservative state known for its poor air quality. Using a sample of 112 residents across eight choice sets (providing 896 responses) we estimate rank-ordered preferences for applying carbon tax revenues from gasoline purchases between redistributive programs and environmental purposes. Our sample of Utah residents shows preference for using tax revenues to eliminate regressive taxes, particularly a sales tax on grocery food items, and to fund environmental initiatives like air quality improvement and clean energy development. Preferences vary by political affiliation. Across all revenue uses, Democrats tend to have higher marginal valuations compared to Republicans and Independents. Independents align closer with Democrats in their ranking of preferred revenue uses, and closer to Republicans in terms of marginal valuations. Our findings provide insight into Utahns’ environmental and energy policy preferences, particularly in an area where political party resistance may hinder adoption, and offer guidance for an effective carbon tax policy design.

Suggested Citation

  • Tenney, Katelyn & Cavlovic, Therese, 2026. "Carbon tax earmarking in a conservative state: Choice experiment evidence from Utah," Ecological Economics, Elsevier, vol. 240(C).
    • Handle: RePEc:eee:ecolec:v:240:y:2026:i:c:s0921800925002824
    DOI: 10.1016/j.ecolecon.2025.108799
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    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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