Determinants of Willingness to Bear the Costs of Climate Action: Insights from Cross-Country Survey Data

Working Paper 911

Abstract

Using data from the 2020 International Social Survey Programme (ISSP), Environment IV module from 26 countries on about 29,183 individuals, we investigate the influence of socio-demographic factors, consumer behavior, environmental beliefs, opinions, and attitudes on the willingness to pay higher prices and higher taxes, as well as the willingness to reduce their standard of living of respondents in support of environmental protection. The findings reveal significant variations in willingness to bear financial burdens for environmental protection across different countries and socio-economic groups. Our analysis highlights the critical role of education, religion, political affiliation, and trust in institutions in shaping environmental attitudes and behaviors. Moreover, after controlling for individual characteristics, significant international disparities persist, with countries like India and some East Asian nations (e.g., Japan, South Korea) showing notably high willingness to bear the costs across all measures. Many European countries, despite their progressive environmental policies, show lower willingness for higher taxes which may be due to already high tax burdens. These findings underscore the importance of tailoring policy communications to different socio-economic groups, emphasizing both the immediate and long-term benefits of environmental protection to enhance acceptance among various demographic segments.