Do you not like Pigou, or do you not understand him? Tax aversion and revenue recycling in the lab

A-Tier
Journal: Journal of Environmental Economics and Management
Year: 2011
Volume: 62
Issue: 1
Pages: 53-64

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Tax-aversion reduces the likelihood that price rationing can be a politically viable tool for environmental protection. We examine the case of the classic Pigouvian tax to control a negative externality, and consider how recycling the revenues, labeling of the tax and information about its purpose affects the support for taxation. We test the support for taxation within a single-price market experiment, in which purchases by some buyers impose external costs on others. Observing behavior consistent with tax-aversion, we also find that recycling the revenues to more narrowly targeted groups seems to increase support for taxation. In the absence of narrow revenue recycling, labeling a Pigouvian instrument as a 'tax' may significantly lower the likelihood of voter support.

Technical Details

RePEc Handle
repec:eee:jeeman:v:62:y:2011:i:1:p:53-64
Journal Field
Environment
Author Count
3
Added to Database
2026-01-25