Opposition to Carbon Pricing: Beliefs, Revenues, and Protesters

Abstract

Economists widely support carbon pricing—through taxes or emission permits—as an effective, cost-efficient strategy to fight climate change. Yet these policies often encounter strong political opposition. This dissertation examines the reasons behind this public resistance, focusing specifically on how people's beliefs, exposure to energy price increases, and choices regarding revenue allocation influence attitudes toward carbon pricing. Using surveys and experiments across Europe and Sweden, the research shows that exposure to increased electricity prices intensify concerns about costs and fairness, increasing opposition to carbon taxes. How governments spend carbon pricing revenues—whether returning them directly to citizens or investing in green projects—also significantly influences public acceptance. Trust in government emerges as another crucial factor, particularly among those actively protesting fuel taxes. Understanding these dynamics can help policymakers design climate policies that are not only effective but also politically feasible.