Conference Agenda

While numerous studies have analysed the public acceptability of the carbon tax, surprisingly, little is known about citizens’ preferences for the EU Emissions Trading System for buildings, road transport, and small industry (ETS2). The paper examines the public acceptability of the ETS2 and willingness to pay for its attributes using data from nationwide representative surveys conducted in three EU Member States (the Czech Republic, Spain, and Sweden). In total, 4,917 respondents were interviewed via online access panels in 2024. The findings suggest that public acceptability of the new ETS2 can be increased by allocating revenues from the sale of emission allowances according to citizen preferences. The revenue use options are categorised into support for green projects, vulnerable groups, and other governmental policies. Popular green initiatives include renewable energy and energy savings, while support for vulnerable groups favours vouchers and income support. Preferences of inhabitants of the three countries vary in using revenues for public policies, with differing opinions on defence, health, and nuclear energy. Perceived environmental effectiveness, costs, and personal benefits from the ETS2 affect public support. Preferences are notably shaped by individual eligibility for benefits, especially vouchers and discounts, which are the most favoured option among those who feel they are eligible. People who feel they will suffer or struggle are more likely to choose the 'no new ETS2' option or opt out and are opposed to more stringent emission reduction policies. The outcomes of this research provide policymakers with insights into the most widely accepted policy package(s) and offer useful information for the debate over the design of the Social Climate Fund.