Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 505: Attitudes to Personal Carbon Allowances

David Andersson (), Åsa Löfgren () and Anna Widerberg ()
Additional contact information
David Andersson: Physical Resource Theory, Dept of Energy and Environment, Chalmers University of Technology, Postal: SE 412 96 GOTHENBURG
Åsa Löfgren: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, SE 40530 GOTHENBURG
Anna Widerberg: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, 405 30 GÖTEBORG

Abstract: A personal carbon allowance (PCA) scheme targets emissions from individual consumption and allocates allowances directly to individuals by dividing the carbon budget on a per capita basis. In this study we analyse the results of a survey sent out to a representative sample of the Swedish population regarding attitudes to a potential PCA scheme. The distinctive design of a PCA scheme is likely to give rise to specific factors affecting individuals attitudes, such as the perceived fairness of the allocation of allowances and corresponding redistribution of wealth, as well as the perceived complexity of the scheme. We perform an ordered probit analysis with attitude to PCAs as the dependent variable, controlling for a number of variables potentially affecting such attitudes. Interestingly, our findings indicate that the most important variable explaining attitudes to the scheme is the perception of respondents that this type of policy instrument seems very complex.

Keywords: Attitudes; Climate change; Environment; Fairness; Personal carbon allowances; Public opinion; Tradable energy quotas

JEL-codes: D12; D60; H23; Q48; Q58

17 pages, May 19, 2011

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