Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/333495 
Year of Publication: 
2025
Series/Report no.: 
IMK Working Paper No. 226
Publisher: 
Hans-Böckler-Stiftung, Institut für Makroökonomie und Konjunkturforschung (IMK), Düsseldorf
Abstract: 
We examine how perceptions about the costs of carbon pricing affect policy acceptance. Using a representative sample of the German population, we conduct experiments that provide randomly selected respondents with personalized information about their costs at the current carbon price or a higher future price. Participants tend to overestimate their current costs and increase their carbon price acceptance when receiving cost information. In contrast, respondents underestimate future costs and reduce their support once they learn about actual costs. This underscores the importance of personalized information in fostering current support for carbon pricing, while cautioning against potential backlash as prices rise.
Subjects: 
Carbon pricing
policy acceptance
perceptions
experiment
JEL: 
D12
D83
H23
Q58
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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