The role of climate dividends and their distributional ef-fects for the public support of carbon taxes

In this project, we would like to shed light on the determinants of public acceptance of carbon taxes if combined with different social compensation/ revenue recycling schemes. Specifically, we want to determine whether providing consumers with in-formation on the ecological effectiveness and distributional implications of different policy mixes can help to generate public support for carbon pricing.
With this project, we aim to strengthen DIW’s understanding of the behavioral as-pect of social acceptance of a policy committed to climate protection and to contrib-ute to improving the information and communication policy on the actual effects of currently discussed models of social compensation. For this, we plan to run an online vignette survey covering a representative sample of around 2000-3000 respondents. This project would leverage the expertise of four different departments, e.g., the SOEP’s experience with survey designs and attitude research, the EVU and Climate Policy Department’s expertise on carbon pricing, and the Public Economics Depart-ment’s expertise on microsimulation.