Does information help to overcome public resistance to carbon pricing? Evidence from an information provision experiment

Last registered on January 03, 2023

Pre-Trial

Trial Information

General Information

Title
Does information help to overcome public resistance to carbon pricing? Evidence from an information provision experiment
RCT ID
AEARCTR-0010629
Initial registration date
December 15, 2022

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
January 03, 2023, 4:25 PM EST

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

Region

Primary Investigator

Affiliation
Technical University of Munich

Other Primary Investigator(s)

PI Affiliation
University of Passau

Additional Trial Information

Status
Completed
Start date
2020-12-09
End date
2020-12-26
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
To study how information affect people’s views on carbon pricing, we conduct an online survey experiment in a representative sample of the German population. We show that providing information about the efficiency of carbon pricing as well as providing information about emission levels and national carbon pricing initiatives changes people’s perceptions and improves their support. Providing information about the distributional implications of carbon pricing—including the possibility to reverse disadvantageous distributional effects through revenue recycling—is, however, not effective. Moreover, we show that the effectiveness of the information treatments depends on trust in the government and attitudes toward climate change.
External Link(s)

Registration Citation

Citation
Cantner, Fabienne and Geske Rolvering. 2023. "Does information help to overcome public resistance to carbon pricing? Evidence from an information provision experiment." AEA RCT Registry. January 03. https://doi.org/10.1257/rct.10629-1.0
Experimental Details

Interventions

Intervention(s)
We randomly assign respondents to a control group or one of three treatment groups. Each of the treatment groups receives information about a different aspect of carbon pricing in form of a written text and an accompanying graphical illustration. The control
group receives no information.

The Efficiency treatment first explains that carbon pricing makes emission-intensive behavior more expensive and thus creates a financial burden for both individuals and firms. It, however, also explains the negative external effects of carbon emissions and the idea of the polluter pays principle. Finally, it argues that carbon pricing creates financial incentives to reduce emission-intensive behavior and provides concrete examples

The Redistribution treatment informs respondents about the regressive nature of carbon pricing. It, however, also explains that carbon pricing leads to government revenues that can be used to reverse these disadvantageous distributional effects through, e.g., lump sums or other tax reductions. Moreover, the treatment informs about the federal government’s plans for the use of the revenues from the German carbon price.

The Comparison treatment provides a social information. Specifically, it informs respondents about per capita emission levels in Germany and compares it to other countries such as China, the United States of America, or other European member states. Moreover,
it provides information on the number of European member states that already have a national carbon price in addition to the European Emissions Trading Scheme at the time of the survey.
Intervention Start Date
2020-12-09
Intervention End Date
2020-12-26

Primary Outcomes

Primary Outcomes (end points)
We show that providing information about the efficiency of carbon pricing as well as providing information about emission levels and national carbon pricing initiatives changes people’s perceptions and improves their support. Providing information about the distributional implications of carbon pricing—including the possibility to reverse disadvantageous distributional effects through revenue recycling—is,however, not effective.
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
We collected our data in December 2020 using the commercial survey company Respondi. This survey company maintains a panel of German respondents to whom it emailed our survey links based on certain socioeconomic characteristics. In addition to the link, the email contained information about the duration of the survey and the payment for fullparticipation. Those panelists who responded to the email were first directed to a welcome page before they needed to answer three screening questions that ensured our sample is representative in terms of age, gender, and income.
Our survey consists of five sections, three treatment groups and one control group.

First, we ask respondents several questions about basic socio-demographic characteristics, including their gender, age, household income, level of education, employment status, marital status, number of children, migration background, state of residence, and size of the place of residence. Moreover, we collect data on respondents’ political attitudes including their political affiliation, a self-assessment of
their political knowledge as well as their trust in the government.

Next, we give our respondents a brief introduction on what carbon pricing is and inform them about the introduction of the German carbon price. We then closely follow Ferrario & Stantcheva (2022) and gather respondents’ first-order considerations by asking about the first thoughts, the advantages, and the disadvantages that come to their minds when thinking about the introduction of the German carbon price. To avoid pushing respondents in any direction, we make use of open-end questions and encourage respondents to write as much as they like. Thereafter, we explicitly ask respondents whether they support the introduction of the German carbon price.

In the next part of the survey, we measure respondents’ climate change awareness by asking whether they agree that global warming
exists, that it is (among others) human-caused, that global warming has serious consequences and whether they agree that scientists exaggerate the dangers of climate change. We, furthermore, ask how worried they are about global warming.

Subsequently, we randomly assign respondents to a control group or one of three treatment groups. Each of the treatment groups receives information about a different aspect of carbon pricing in form of a written text and an accompanying graphical illustration. The control
group receives no information.
The Efficiency treatment first explains that carbon pricing makes emission-intensive behavior more expensive and thus creates a financial burden for both individuals and firms. It, however, also explains the negative external effects of carbon emissions and the idea of the polluter pays principle. Finally, it argues that carbon pricing creates financial incentives to reduce emission-intensive behavior and provides concrete examples
The Redistribution treatment informs respondents about the regressive nature of carbon pricing. It, however, also explains that carbon pricing leads to government revenues that can be used to reverse these disadvantageous distributional effects through, e.g., lump sums or other tax reductions. Moreover, the treatment informs about the federal government’s plans for the use of the revenues from the German carbon price.
The Comparison treatment provides a social information. Specifically, it informs respondents about per capita emission levels in Germany and compares it to other countries such as China, the United States of America, or other European member states. Moreover,
it provides information on the number of European member states that already have a national carbon price in addition to the European Emissions Trading Scheme at the time of the survey. In the final section of our survey, we explore how respondents think about carbon pricing. For this reason, we elicit their perceptions of the efficiency of carbon pricing (will individuals or firms change their behavior?), the distributional implications of carbon pricing (how much will low income households be affected?), and global emission levels and national carbon pricing initiatives (where does Germany rank?). Thus, the questions focus on the dimensions covered in the three information treatments.
Moreover, we ask our respondents again whether they support the introduction of the German carbon price, whether they consider it to be fair, or whether they think carbon pricing is a suitable policy measure to reduce climate change. We also include two "realstakes"
questions to receive alternative measures for respondents’ support. First, we inform the respondents that they take part in a lottery to win 10€. We then ask them how much of their win, they are willing to donate to an organization that promotes emission reductions if they win the lottery. Second, we use a variant of the incentivized coordination game by Krupka & Weber (2013) to elicit respondents’ views on other
people’s support for the German carbon price and thus their perceived social norm.
Experimental Design Details
Randomization Method
Randomization done by the survey software we use.
Randomization Unit
Randomization on individual basis
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
4500 participants
Sample size: planned number of observations
4500 participants
Sample size (or number of clusters) by treatment arms
900 participants control, 900 participants efficiency treatment, 900 participants redistiution treatment, 1800 participants social comparison treatment
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
IRB

Institutional Review Boards (IRBs)

IRB Name
IRB Approval Date
IRB Approval Number

Post-Trial

Post Trial Information

Study Withdrawal

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Intervention

Is the intervention completed?
Yes
Intervention Completion Date
December 26, 2020, 12:00 +00:00
Data Collection Complete
Yes
Data Collection Completion Date
December 26, 2020, 12:00 +00:00
Final Sample Size: Number of Clusters (Unit of Randomization)
4483 participants
Was attrition correlated with treatment status?
No
Final Sample Size: Total Number of Observations
4483 participants
Final Sample Size (or Number of Clusters) by Treatment Arms
889 participants control, 902 participants efficiency treatment, 884 participants redistiution treatment, 1808 participants social comparison treatment
Data Publication

Data Publication

Is public data available?
No

Program Files

Program Files
No
Reports, Papers & Other Materials

Relevant Paper(s)

Abstract
To study how different economic information affect people’s perceptions and attitudes towards carbon prices, we conduct an online survey experiment in a representative sample of the German voting population. We find that providing information
about the efficiency of carbon prices as well as on international emission levels and
carbon price initiatives changes people’s perceptions and their support. Information about the possibility and benefits of revenue recycling, however, only affect
the views of very specific subgroups of the population, such as individuals with
low income or high trust in the government. Moreover, we find that none of the
information affects the perceptions and support of climate change skeptics.
Citation
Cantner, Fabienne; Rolvering, Geske (2022) : Does information help to overcome public resistance to carbon prices? Evidence from an information provision experiment, Passauer Diskussionspapiere - Volkswirtschaftliche Reihe, No. V-91-22, Universität Passau, Wirtschaftswissenschaftliche Fakultät, Passau

Reports & Other Materials