Green Spending vs. Lump Sum Redistribution: Experimental Evidence of Support for Carbon Pricing Mechanisms

Abstract

Climate change is ever present as one of the greatest challenges of our time and carbon pricing schemes have been proposed as an effective mitigation policy. However, carbon pricing remains unpopular. This paper contributes to the literature on carbon pricing by trying to show that revenue recycling schemes can boost popularity of carbon pricing schemes. To achieve this, an RCT was carried out to test different treatments on individuals support for carbon pricing. However, treatment effects remain insignificant and no clear conclusion about the effect of revenue recycling mechanisms on support for carbon pricing can be drawn.

Felix Wortmann Callejón

Junior Associate

Interested in political economy and causal inference.