Mapping Mass Preferences over Carbon Tax Revenue Use in Europe

Abstract

To alleviate public resistance to carbon pricing, pundits and policymakers often recommend returning carbon tax revenues to households as rebates. We explore whether this approach aligns with public preferences over carbon tax revenue use based on survey data from 21,000 respondents across 17 European countries. We find that majorities prioritize long-term climate investment over receiving immediate rebates. Respondents also prefer that carbon dividends be targeted toward lower-income households rather than distributed as emission-based rebates or uniform lump-sum payments. In addition, majorities support mitigation efforts that contribute to the global public good of emissions reduction over local adaptation. Taken together, these findings challenge prevailing assumptions in policy debates about the political feasibility of climate investment, indicating potentially critical public support for targeting more ambitious climate goals.

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