Can Information, Compensation, and Party Cues Increase Mass Support for Green Taxes?

Abstract

The transition from fossil fuels to renewable energy presents a major challenge, with green taxes often seen as an efficient policy to promote environmentally friendly behavior. However, these taxes are difficult to implement due to public concerns about immediate costs versus future environmental benefits. To address this, we conducted a survey experiment in Switzerland to investigate whether information on green tax efficacy, compensation through revenue recycling, and party cues can increase support for green taxes. Our findings indicate that information about compensation mechanisms and party cues can enhance support for green taxes, while single instances of information on tax efficacy do not significantly affect beliefs or policy support. Support increases when compensation strategies address climate change or mitigate social risks and when there is broad party consensus providing clear cues to citizens. However, our findings also underscore the potential trade-off associated with a broad coalition of parties supporting green tax reform, which may lead to diminished support from the left. These insights have important implications for the design and communication of green taxes, highlighting the role of informed beliefs and political signals in shaping public attitudes toward environmental policies.