A new study by the Potsdam Institute for Climate Impact Research (PIK) has found that the introduction of a CO2 tax is necessary to reduce CO2 emissions and limit climate change. Despite criticism that Germany’s 2.1% contribution to global emissions is insignificant, the study found that a CO2 tax could be accepted by the majority of the population in both Germany and the United States if other industrialized nations also introduced such a tax. The study, published in the journal Science Advances, surveyed 3,000 people in each country to determine the factors that influence public acceptance of a CO2 tax.
The study found that the level of the CO2 tax and its use are crucial factors in determining public acceptance. The researchers identified the use of the tax revenue as the most important factor, with people more willing to pay if they know the government will use the revenue for renewable energy or infrastructure projects. Conversely, using the revenue to pay off government debt or subsidize corporations reduces public acceptance. The study also found that people in the United States are willing to pay up to $60 per ton of CO2, while Germans are willing to pay only $20 per ton.
The study’s authors were surprised to find that Americans were more willing to pay than Germans, and that public acceptance was dependent on other industrialized nations also introducing a similar tax. The study highlights the importance of a coordinated global effort to reduce CO2 emissions and limit climate change.
