Perceived fairness and public acceptability of carbon pricing: a review of the literature

Maestre‐Andrés, Sara; Drews, Stefan; Bergh, Jeroen C.J.M. van den

doi:10.1080/14693062.2019.1639490

Cited by 229 publications

(134 citation statements)

References 62 publications

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“…Depending on the national context, revenues could be used for complementary green investments to provide local tangent benefits to citizens (Douenne and Fabre 2020 ). In addition, governments need to account for a wide variety of fairness concerns (Maestre-Andrés et al 2019 ) and compensate for potentially regressive effects of climate policy (Klenert et al 2018a , b ) to enhance support.…”

Section: Lesson 2: Find Ways To Get Citizens On Boardmentioning

confidence: 99%

“…The government’s ability to address inequalities and the needs of especially vulnerable populations, both those created by the threat itself and those created by policy action to contain it, may be a major determinant of whether such trust will emerge. As citizens are more likely to stand behind mitigation measures that they perceive to be “fair”, accounting for inequalities may further help with enhancing public support and increase the chances for successful implementation (Maestre-Andrés et al 2019 ).…”

Section: Lesson 3: Inequality Can Lead To Worse Outcomesmentioning

confidence: 99%

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Five Lessons from COVID-19 for Advancing Climate Change Mitigation

Klenert

Funke

Mattauch

et al. 2020

Environ Resource Econ

149

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The nexus of COVID-19 and climate change has so far brought attention to short-term greenhouse gas (GHG) emissions reductions, public health responses, and clean recovery stimulus packages. We take a more holistic approach, making five broad comparisons between the crises with five associated lessons for climate change mitigation policy. First, delay is costly. Second, policy design must overcome biases to human judgment. Third, inequality can be exacerbated without timely action. Fourth, global problems require multiple forms of international cooperation. Fifth, transparency of normative positions is needed to navigate value judgments at the science-policy interface. Learning from policy challenges during the COVID-19 crisis could enhance efforts to reduce GHG emissions and prepare humanity for future crises.

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Section: Lesson 2: Find Ways To Get Citizens On Boardmentioning

confidence: 99%

Section: Lesson 3: Inequality Can Lead To Worse Outcomesmentioning

confidence: 99%

Five Lessons from COVID-19 for Advancing Climate Change Mitigation

Klenert

Funke

Mattauch

et al. 2020

Environ Resource Econ

149

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“…Experience with carbon pricing in British Columbia shows that redistribution of revenues can also enhance public support (Murray & Rivers, 2015). The broader literature on equity perceptions underlying public support for carbon pricing confirms this (Carattini et al, 2017(Carattini et al, , 2018(Carattini et al, , 2019Maestre-Andrés et al, 2019).…”

Section: Equity Concernsmentioning

confidence: 74%

A dual-track transition to global carbon pricing

et al. 2020

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Unilateral climate policies have been unable to achieve intended emissions reductions. We argue that international harmonization of climate policy beyond the Paris Agreement is the only way forward and that global carbon pricing, either through a tax or market, is the best available instrument to manage this. A foundation has already been laid, as current carbon pricing initiatives cover about 20% of global CO 2 emissions. Since it limits free-riding by countries/jurisdictions, global carbon pricing is, in principle, behaviourally easier to negotiate than other instruments, such as emission targets or technical standards. To overcome political resistance, we propose a dynamic strategy consisting of two parallel tracks and five transition phases. The first track entails assembly of a carbon-pricing coalition that expands over time and exerts moral and economic pressure on non-members to join. The second track involves refocusing UN intergovernmental climate change negotiations on carbon pricing, potentially involving initially heterogeneous prices reflecting distinct income levels of countries, which then gradually converge. The dual tracks are designed to reinforce one another, increasing the likelihood of a successful outcome. The proposal results in a transition trajectory consisting of two interactive tracks and five phases, with specific attention to inequity within and among countries. We illustrate how such an approach could function with either a carbon tax or market. Key policy insights. International harmonization of climate policies is required to achieve the deep cuts in emissions needed to meet the Paris Agreement's 2°C or 1.5°C target.. A focus on carbon pricingeither through taxation or emissions tradinghas multiple strengths: it can be easily compared and harmonized among countries; it can be gradually strengthened over time; it moderates freeriding and fear of competitiveness losses; and it automatically generates revenues to compensate low-income households and countries.

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“…One key political economy consideration in relation to low energy prices is how these translate into perceived costs on the consumer side (Maestre-Andrés et al, 2019), and the consequent repercussions for the acceptability of carbon pricing. There are different categories of consumer goods where changes in energy prices translate into lower prices for the consumer with greater or lesser transparency.…”

Section: Persistently Low Oil Pricesmentioning

confidence: 99%

“…9 Aside from the distributional benefits, lump-sum transfers were, for example, also helpful in building a supportive constituency for the British Columbian carbon tax (Harrison, 2012) and made it amongst the most supported designs in a Swiss choice survey experiment (Carattini et al, 2017). It is worth noting that alternative uses of these funds could have greater welfare benefits by reducing distortionary taxes, such as labour taxes, although it is plausible that these uses of revenue should be dispreferred to those which decrease regressivity and increase political acceptability (Klenert et al, 2018;Maestre-Andrés et al, 2019). In the context of the COVID-19 crisis, fiscal imperatives have to be weighed against these distributive concerns, raising the opportunity cost of using carbon tax revenue to redress regressivity.…”

Section: Potential Revenue During the Crisismentioning

confidence: 99%

Carbon pricing and COVID-19

et al. 2020

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A question arising from the COVID-19 crisis is whether the merits of cases for climate policies have been affected. This article focuses on carbon pricing, in the form of either carbon taxes or emissions trading. It discusses the extent to which relative costs and benefits of introducing carbon pricing may have changed in the context of COVID-19, during both the crisis and the recovery period to follow. In several ways, the case for introducing a carbon price is stronger during the COVID-19 crisis than under normal conditions. Oil costs are lower than normal, so we would expect less harm to consumers compared to normal conditions. Governments have immediate need for diversified new revenue streams in light of both decreased tax receipts and greater use of social safety nets. Finally, supply and demand shocks have led to already destabilized supply-side activities, and carbon pricing would allow this destabilization to equilibrate around greener production for the longterm. The strengthening of the case for introducing carbon pricing now is highly relevant to discussions about recovery measures, especially in the context of policy announcements from the European Union and United States House of Representatives. Key policy insights:. Persistently low oil prices mean that consumers will face lower pain from carbon pricing than under normal conditions.. Many consumers are more price-sensitive during the COVID-19 context, which suggests that a greater relative burden from carbon prices would fall upon producers as opposed to consumers than under normal conditions.. Carbon prices in the COVID-19 context can introduce new revenue streams, assisting with fiscal holes or with other green priorities.. Carbon pricing would contribute to a more sustainable COVID-19 recovery period, since many of the costs of revamping supply chains are already being felt while idled labour capacity can be incorporated into firms with lower carbon-intensity.

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Perceived fairness and public acceptability of carbon pricing: a review of the literature

Cited by 229 publications

References 62 publications

Five Lessons from COVID-19 for Advancing Climate Change Mitigation

Five Lessons from COVID-19 for Advancing Climate Change Mitigation

A dual-track transition to global carbon pricing

Carbon pricing and COVID-19

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