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What Is the Probability That the Environmentally Conscious Are Willing to Pay Higher Taxes and Higher Prices to Protect the Environment? Recent Evidence for the United States

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Australian Journal of Agricultural and Resource Economics

Published online on

Abstract

["Australian Journal of Agricultural and Resource Economics, EarlyView. ", "\nABSTRACT\nAmericans across the country are plagued with harmful effects from air and water pollution, resource depletion, land degradation, biodiversity loss and climate change. Protecting the natural environment, ecosystems and humans from these effects will demand substantive changes in production methods, delivery processes and consumption patterns. Amassing resources to effect such changes will likely require both higher taxes and prices. Currently, the literature offers little in the way of estimating or identifying the factors important in determining the public's willingness to pay both higher taxes and higher prices, in principle, for environmental protection. This paper is a first attempt to fill this gap. Using data from the United States 2021 General Social Survey, we estimate a bivariate ordered probit model, enabling us to calculate average marginal effects on and average predicted probabilities of the willingness to pay both higher taxes and higher prices to protect the environment. Without considerable and widespread changes in attitudes and beliefs, results suggest that there is little chance that a majority of Americans will support higher prices, a smaller chance of a majority supporting higher taxes and a still smaller chance that a majority will support both higher taxes and higher prices for environmental protection.\n"]