Associate Professor in Economics and Co-Founder of Impactually - Creating impact through behavioral science
Does a carbon tax lead to a relative increase in consumption of a polluting good? At the opening event of TWS Partners new headquarters I got to speak, among other things, about our new study on carbon taxation. And yes, we find that compared to a scenario without a carbon tax, a low carbon tax seems to crowd out intrinsic motivation to consume the low-carbon good compared to a high-carbon good. This only holds for those who say that they care a lot about their impact on the climate. This would mean that intrinsic (moral) reasons for consuming lower carbon goods and extrinsic (financial) reasons are substitutes, not complements. Someting that can be explained with moral licensing.
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Interesting!
Associate Professor at King’s College London • Professional Education Lead, Policy Institute • Visiting Fellow at London School of Economics • Editor at Nature Scientific Reports, Hum & Soc Sci Comms, PLOS One
8moInteresting but does that happen across all income strata’s? It is likely (and hence the tax is often regressive) that poor will miss out on those good but the rich can continue to pay for them, unless you raise the tax really high enough.