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Are rural households hit hardest? Exploring the distributional effects of region-specific compensation payments in the Austrian CO2 pricing scheme In 2022 Austria has introduced a CO2 pricing scheme that aims at emissions from activities not covered by the EU Emissions Trading System. To increase…

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New paper out on the non-ETS #CO2tax and recycling schemes in Austria.
Key result: Long term effects are not regressive due to income side effects that compensate regressive expenditure side effects.

@wegenercenter.bsky.social

www.sciencedirect.com/science/arti...

Deense boer zonder protest aan CO2-taks: 'Duidelijkheid is belangrijk' Op grond van een nieuw landbouwakkoord gaan boeren belasting betalen voor hun CO2-uitstoot. Ze kunnen ook kiezen om grond aan de overheid te verkopen.

Deense boer zonder protest aan CO2-taks: 'Duidelijkheid is belangrijk'

Het kan dus wel 💪

nos.nl/artikel/2548...

Lees ook mijn pleidooi:

buizeradvies.nl/2022/01/20/n...

#CO2tax #mestoverschot #stikstof #klimaat

#ecologischverantwoordelandbouw
#kabinet

DP19712 Gradual Policy Reforms We investigate, using an online experiment, whether a gradual policy reform can increase support for CO2 taxes compared to a one-step reform. Under a gradual reform, voters first decide on implementing an intermediate tax, followed by a second decision between maintaining the intermediate tax or adopting a higher tax. We hypothesize that the gradual reform may increase voter support by shifting norms and correcting misperceptions; but it has the disadvantage that the benefits of a high tax, relative to an intermediate tax, can appear (too) small. Our empirical findings reveal that the gradual reform backfires: fewer voters support a high CO2 tax under the gradual reform than under the one-step reform. This effect appears to stem from voter satisfaction with the intermediate tax and adverse responses to subsequent reform steps. Further, positive perceptions that arise from experiencing an intermediate tax do not spillover to perceptions about the high tax. Information provision partially alleviates backfiring of the gradual reform.

Full paper & insights here: cepr.org/publications...

The work was supported by the Danmarks Frie Forskningsfond, AUFF and Carlsberg Foundation and conducted at Aarhus BSS - Aarhus University

#ClimatePolicy #CO2Tax #EnvironmentalEconomics #Sustainability