Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
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Daily Overview |
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Preferences Location: B002 Session Chair: Yang Wang, Shiga University | |
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Shocking Electricity Prices and Carbon Tax Aversion Chalmers University of Technology, Sweden I study the causal impact of exposure to sharply increased electricity prices on attitudes toward carbon taxation, utilizing a geographic regression discontinuity design and a targeted survey of Swedish households near electricity bidding zone borders. I find that exposure to doubled electricity prices increases opposition to carbon taxation by 20 percentage points. Additionally, this exposure leads to shifts in respondents' policy beliefs, leading to increased overestimation of the tax’s costs and reinforcing the erroneous perception that a progressive carbon tax is regressive. To quantify the role of these belief changes in explaining the observed increase in opposition, I employ an instrumental variable approach, leveraging tailored information treatments within the survey as instruments. My analysis indicates that 27% and 56% of the observed increase in opposition can be attributed to pessimistic shifts in the beliefs about the tax's affordability and progressivity, respectively. | |