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Limited impacts of carbon tax rebate programmes on public support for carbon pricing

Author

Listed:
  • Matto Mildenberger

    (University of California)

  • Erick Lachapelle

    (Université de Montréal)

  • Kathryn Harrison

    (University of British Columbia)

  • Isabelle Stadelmann-Steffen

    (University of Bern)

Abstract

Revenue recycling through lump-sum dividends may help mitigate public opposition to carbon taxes, yet evidence from real-world policies is lacking. Here we use survey data from Canada and Switzerland, the only countries with climate rebate programmes, to show low public awareness and substantial underestimation of climate rebate amounts in both countries. Information was obtained using a five-wave panel survey that tracked public attitudes before, during and after implementation of Canada’s 2019 carbon tax and dividend policy and a large-scale survey of Swiss residents. Experimental provision of individualized information about true rebate amounts had modest impacts on public support in Switzerland but potentially deleterious effects on support in Canada, especially among Conservative voters. In both countries, we find that perceptions of climate rebates are structured less by informed assessments of economic interest than by partisan identities. These results suggest limited effects of existing rebate programmes, to date, in reshaping the politics of carbon taxation.

Suggested Citation

  • Matto Mildenberger & Erick Lachapelle & Kathryn Harrison & Isabelle Stadelmann-Steffen, 2022. "Limited impacts of carbon tax rebate programmes on public support for carbon pricing," Nature Climate Change, Nature, vol. 12(2), pages 141-147, February.
    • Handle: RePEc:nat:natcli:v:12:y:2022:i:2:d:10.1038_s41558-021-01268-3
    DOI: 10.1038/s41558-021-01268-3
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    Cited by:

    1. Grischa Perino & Johannes Jarke-Neuert & Felix Schenuit & Martin Wickel & Cathrin Zengerling, 2022. "Closing the Implementation Gap: Obstacles in Reaching Net-Zero Pledges in the EU and Germany," Politics and Governance, Cogitatio Press, vol. 10(3), pages 213-225.
    2. Sommer, Stephan & Konc, Théo & Drews, Stefan, 2023. "How Resilient is Public Support for Carbon Pricing? Longitudinal Evidence from Germany," Ruhr Economic Papers 1017, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. Malerba, Daniele, 2023. "The role of social protection in environmental fiscal reforms," IDOS Discussion Papers 10/2023, German Institute of Development and Sustainability (IDOS).
    4. Sileci, Lorenzo, 2023. "Carbon pricing with regressive co-benefits: evidence from British Columbia’s carbon tax," LSE Research Online Documents on Economics 121047, London School of Economics and Political Science, LSE Library.
    5. Eßer, Jana & Frondel, Manuel & Sommer, Stephan & Wittmann, Julia, 2023. "CO2-Bepreisung in Deutschland: Kenntnisstand privater Haushalte im Jahr 2022," RWI Materialien 157, RWI - Leibniz-Institut für Wirtschaftsforschung.
    6. McFadzean-Lodge, Liam, 2023. "Market-Based Approaches to Achieve Australia’s Emissions Reduction Targets," Warwick-Monash Economics Student Papers 60, Warwick Monash Economics Student Papers.
    7. Pitkänen, Atte & von Wright, Tuuli & Kaseva, Janne & Kahiluoto, Helena, 2022. "Distributional fairness of personal carbon trading," Ecological Economics, Elsevier, vol. 201(C).
    8. Bartels, Lara & Werthschulte, Madeline, 2023. ""More bang for the buck"? Evidence on the effectiveness of an energy efficiency subsidy," ZEW Discussion Papers 23-022, ZEW - Leibniz Centre for European Economic Research.
    9. Kolcava, Dennis & Smith, E. Keith & Bernauer, Thomas, 2022. "Public Preference Formation Towards Sustainable Global Supply Chains Policy," OSF Preprints 2hez9, Center for Open Science.
    10. Dan Wang & Juheng Yang, 2022. "Carbon Neutrality Strategies for Chinese International Oil Company Based on the Rapid Development of Global Carbon Market," Sustainability, MDPI, vol. 14(18), pages 1-16, September.
    11. George, Jan Frederick & Werner, Simon & Preuß, Sabine & Winkler, Jenny & Held, Anne & Ragwitz, Mario, 2023. "The landlord-tenant dilemma: Distributional effects of carbon prices, redistribution and building modernisation policies in the German heating transition," Applied Energy, Elsevier, vol. 339(C).
    12. Beiser-McGrath, Liam & Busemeyer, Marius R., 2023. "Carbon inequality and support for carbon taxation," LSE Research Online Documents on Economics 120925, London School of Economics and Political Science, LSE Library.
    13. Stephan Sommer & Théo Konc & Stefan Drews, 2023. "How resilient is public support for carbon pricing? Longitudinal evidence from Germany," Berlin School of Economics Discussion Papers 0021, Berlin School of Economics.
    14. Jakub Sokołowski & Piotr Lewandowski & Jan Frankowski, 2023. "How to Prevent Yellow Vests? Evaluating Preferences for a Carbon Tax with a Discrete Choice Experiment," IBS Working Papers 03/2023, Instytut Badan Strukturalnych.

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