Can information, compensation and party cues increase mass support for green taxes?

The transition from fossil fuels to renewable energy presents a major challenge, with green taxes often seen as an efficient policy to promote environmentally friendly behaviour. However, these taxes are difficult to implement due to public concerns about immediate costs versus future environmental benefits. To address this, we conducted a survey experiment in Switzerland to investigate whether information on green tax effectiveness, compensation through revenue recycling, and party cues can make green taxes more attractive to citizens. Our findings indicate that information about compensation mechanisms and party cues can enhance support for green taxes, while single instances of information on green tax effectiveness do not significantly affect beliefs or policy support. Green tax proposals are more popular when compensation strategies address climate change or mitigate social risks and when there is broad party consensus providing clear cues to citizens. However, our findings also underscore the potential trade-off associated with a broad coalition of parties supporting green tax reform, which may lead to diminished support from the left. These insights have important implications for designing and communicating green taxes, highlighting the role of informed beliefs and political signals in shaping public attitudes toward environmental policies.