11:30 - 13:00
Location: G07
Chair/s:
Sara Gil Gallen
Submission 20
Changing minds on carbon taxes: How distributional information shapes fairness perceptions and support
P4-G07-01
Presented by: Laura Galdikiene
Laura GaldikieneAusrine Dirzinskaite
Vilnius University
Earth has warmed rapidly over the past century due to human-induced greenhouse gas emissions. While carbon taxation is an effective tool for reducing emissions, it often faces resistance rooted in fairness perceptions, distributional concerns, and skepticism about revenue use. Limited experimental evidence exists on how these factors interact, particularly outside North America and Western Europe. This study investigates public attitudes toward carbon taxation in Lithuania, a country with low climate concern and high transport sector emissions. A recent fuel excise tax increase, implemented in January 2025 and partially allocated to defense spending, faced significant public backlash, offering a unique context for examining fairness perceptions and revenue allocation. We conducted an online survey experiment with 2,553 participants, using three conditions: (1) information on the tax’s impact across income groups, (2) the same information plus details about revenue allocation to defense, and (3) no additional information. Providing information about the tax’s heavier burden on higher-income groups improved fairness perceptions and increased self-reported support but did not affect donations to an environmental organization. Information about revenue allocation to defense spending reduced active opposition but did not significantly change fairness perceptions, donations, or support. These findings highlight the importance of addressing misbeliefs about the distributional effects of carbon policies and emphasize the need for clear communication about revenue use. Additionally, they provide the first experimental evidence on the implications of allocating tax revenues to defense, offering insights into designing equitable and politically viable climate policies.