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Limited evidence that carbon tax rebates have increased public support for carbon pricing
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Limited evidence that carbon tax rebates have increased public support for carbon pricing
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Limited evidence that carbon tax rebates have increased public support for carbon pricing
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Journal Article
Limited evidence that carbon tax rebates have increased public support for carbon pricing
2022
Overview
We find limited evidence that individual or household rebates (also called dividends) have increased public support for carbon taxes in Canada and Switzerland. In the presence of partisan and interest group conflict over climate policy, policymakers should not assume that voter support for carbon pricing will automatically increase with the inclusion of rebates.Messages for policyRebates do not offer a panacea to public opposition to carbon taxation. Taxpayers often remain unaware of the rebate’s existence or underestimate the rebate’s value.Public support for carbon pricing remains structured by partisanship and ideology, even when individuals or households receive material benefits.In the presence of partisan and interest group conflict over carbon taxes, when the costs of carbon taxation are salient, policymakers should not assume that voters’ support for carbon pricing will automatically increase with rebate inclusion.Efforts to increase the political efficacy of dividends must focus on ensuring that citizens understand this policy instrument and must test whether increasing dividend visibility can increase support.
