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How do pocketbook and distributional concerns affect citizens’ preferences for carbon taxation?

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  • Beiser-McGrath, Liam
  • Bernauer, Thomas

Abstract

We shed new light on a long-standing question in political science: When confronted with costly policy choices, do citizens form their preferences using material (economic) concerns or other-regarding motivations, such as the distribution of costs, and how are these moderated by political ideology? Using the case of carbon taxation, a widely advocated policy solution to climate change, we conducted survey experiments in Germany and the United States to assess the relative importance of these forms of preferences. The results show that individuals are primarily concerned with how a carbon tax would affect their individual income. There are also important cross-national differences with high-income German respondents being more receptive to redistributive policy design, especially in contrast to high-income Democrats who significantly decrease support for carbon taxation. These findings highlight how the constituencies generated by new policies can significantly alter the distribution of mass support for action on emerging societal problems.

Suggested Citation

  • Beiser-McGrath, Liam & Bernauer, Thomas, 2024. "How do pocketbook and distributional concerns affect citizens’ preferences for carbon taxation?," LSE Research Online Documents on Economics 120995, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:120995
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    File URL: http://eprints.lse.ac.uk/120995/
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    References listed on IDEAS

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    More about this item

    Keywords

    carbon tax; environmental politics; climate policy; political economy; climate change;
    All these keywords.

    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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