Julia Nafziger
julianafziger.bsky.social
Julia Nafziger
@julianafziger.bsky.social
Behavioral and Experimental Economist, Professor @Aarhus University, Denmark
Thanks - it was a pleasure to be part of Marc’s committee. And congrats to @mvoldeniel.bsky.social to his excellent thesis!
January 26, 2025 at 6:36 PM
Full paper & insights here: cepr.org/publications...

The work was supported by the Danmarks Frie Forskningsfond, AUFF and Carlsberg Foundation and conducted at Aarhus BSS - Aarhus University

#ClimatePolicy #CO2Tax #EnvironmentalEconomics #Sustainability
DP19712 Gradual Policy Reforms
We investigate, using an online experiment, whether a gradual policy reform can increase support for CO2 taxes compared to a one-step reform. Under a gradual reform, voters first decide on implementing an intermediate tax, followed by a second decision between maintaining the intermediate tax or adopting a higher tax. We hypothesize that the gradual reform may increase voter support by shifting norms and correcting misperceptions; but it has the disadvantage that the benefits of a high tax, relative to an intermediate tax, can appear (too) small. Our empirical findings reveal that the gradual reform backfires: fewer voters support a high CO2 tax under the gradual reform than under the one-step reform. This effect appears to stem from voter satisfaction with the intermediate tax and adverse responses to subsequent reform steps. Further, positive perceptions that arise from experiencing an intermediate tax do not spillover to perceptions about the high tax. Information provision partially alleviates backfiring of the gradual reform.
cepr.org
November 28, 2024 at 8:26 AM
📊 Implications: Gradual reforms can, under certain circumstances, reduce support for ambitious climate policies—our study highlights key trade-offs. Providing information can partially alleviate these negative effects.
November 28, 2024 at 8:26 AM
💡 Key Finding: The gradual reform backfires. Fewer voters support a higher tax under the gradual than under the one-step reform - reasons are satisfaction with the intermediate tax and resistance to further reform steps. Positive perceptions of intermediate taxes do not spill over to higher taxes.
November 28, 2024 at 8:26 AM

🔍 Hypothesis: Using an online experiment with a representative sample of 2,237 participants from the UK, we hypothesize that a gradual reform could shift norms and reduce misperceptions about the tax's effects—but it might also lead to voter satisfaction with the intermediate tax.
November 28, 2024 at 8:26 AM