Limiting support for environmental policies: Unfairness is a more critical barrier than cost and ineffectiveness.

Abstract

Costs and policy-specific beliefs, such as effectiveness and fairness, are central factors for supporting environmental taxes. Less is known about how much each of these factors is limiting support. Across four experiments, I investigate to which extent high costs, ineffectiveness, and unfairness constrain support for environmental taxes. Results consistently demonstrate that perceived unfairness poses a greater barrier to support than extensive costs or ineffectiveness. These findings were robust across three environmental taxes (meat tax, plastic tax, and carbon tax), across three cultures (USA, UK, and India), and were replicated using a representative US sample. Furthermore, delving deeper into the consequences of perceived unfairness, results showed that distributional unfairness was a stronger barrier to support than procedural unfairness. Beyond limiting support, being presented with an unfair tax proposal led participants to perceive the tax as less effective and to express lower trust in policymakers than when receiving a fairer tax proposal.