Publications

ABSTRACT

Public resistance remains a significant barrier to implementing the ambitious climate policies that are needed to limit global warming below 2 degrees. While numerous studies have explored public support for climate policies in general, this paper advances the understanding by investigating whether (lack of) support towards carbon pricing and climate policies is concentrated among specific societal groups. A latent class analysis identifies five distinct audience segments in Belgium based on similar climate attitudes and behavioural intentions: the Alarmed (6.9 %), Concerned (38.3 %), Cautious (36.1 %), Disengaged (15.2 %), and Doubtful (3.6 %), and explores the characteristics of these segments. This research also highlights the heterogeneity in preferences across subgroups and shows that belonging to one segment strongly predicts support for climate policies. The Alarmed are most in favour of these policies, while the Doubtful show the least support. More importantly, this study provides novel insights into the acceptability of carbon pricing policies across these subgroups and reveals how revenue use can make carbon pricing acceptable to segments with more sceptical climate attitudes. More specifically, while environmental earmarking risks resulting in “preaching to the converted”, using revenues for non-climate policies such as reducing labour taxes could make carbon pricing acceptable among the Doubtful and Disengaged segments and lessen the risk of social unrest and contestation. More generally, this research shows that considering the heterogeneity of public preferences offers novel insights, and could ultimately help policymakers design and implement more effective carbon pricing and climate policies.

ABSTRACT

Carbon pricing has emerged as a prominent policy tool to mitigate climate change due to its proclaimed high efficiency and effectiveness. However, the successful and sustainable implementation of carbon pricing also depends on the public acceptability. This paper investigates how revenue recycling shapes public attitudes towards carbon pricing. A systematic literature review identified 48 relevant studies from 2004 to March 2023. Using qualitative content analysis I discern relevant factors and construct a typology of revenue recycling options. Subsequently, a consensus ordinal ranking of revenue recycling options, based on the empirical findings of the reviewed studies, synthesizes current knowledge. The results reveal that revenue recycling has a crucial impact on public acceptability. While environmental earmarking ranks highest, and reducing corporate taxes is the least preferred option, numerous other revenue recycling options lie between these two options. Moreover, the literature presents divergent findings regarding the level of public acceptability of specific revenue recycling options. The diversity of research contexts and designs introduces inherent limitations that may explain variations in rankings observed across different studies. Notably, I identify political trust related to and salience of revenue recycling as important factors affecting public acceptability of carbon pricing. Finally, this research offers a framework for policymakers seeking to design revenue recycling strategies that align with public preferences to implement carbon pricing.