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Climate policy is not fiscal policy: understanding attitudes towards climate action

Author

Listed:
  • Ana Fontoura Gouveia
  • João Carvalho

Abstract

Several countries established ambitious climate goals to tackle the climate emergency. To fulfill these goals, bold climate policies are needed, upholding the political commitments and effectively addressing climate change. Given that social resistance is seen as a deterrent for action, this research provides a contribution to policy makers wanting to boost support for climate policies. Relying on randomized control trials over different design options within the same climate instrument – including green taxes, subsidies and regulations –, we show the importance of design features, namely relating to funding options and the overall tax burden. We also show that individual perceptions on climate change and climate policies are significantly associated with support, providing scope for government action also in this front. Taken together, these factors can be enough to sustain a supporting majority for all policies considered.

Suggested Citation

  • Ana Fontoura Gouveia & João Carvalho, 2025. "Climate policy is not fiscal policy: understanding attitudes towards climate action," Working Papers w202513, Banco de Portugal, Economics and Research Department.
    • Handle: RePEc:ptu:wpaper:w202513
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    File URL: https://www.bportugal.pt/sites/default/files/documents/2025-10/WP202513.pdf
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    References listed on IDEAS

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