Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/314758 
Year of Publication: 
2025
Series/Report no.: 
CESifo Working Paper No. 11719
Publisher: 
CESifo GmbH, Munich
Abstract: 
We examine the impact of a carbon tax on consumer choices via a large-scale online randomized controlled trial. Higher taxes generally reduce the demand for high-carbon goods. Compared to an import tax, a carbon tax reduces demand when the tax is zero (i.e., announced but not levied) but leads to relatively higher demand for high-carbon goods when a positive tax is introduced. This contradiction of basic price theory is entirely driven by climate-concerned consumers. Our findings suggest that carbon taxes can crowd out climate concerns, leading to important implications for policy.
Subjects: 
behavioral response
carbon pricing
climate change
climate policy
experiment
moral licensing
JEL: 
Q58
C90
d030
D90
Q50
Q51
Document Type: 
Working Paper
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