When asked to predict support for carbon pricing:

1️⃣ Subjects underestimate support.
➡️Correcting this mistake might further increase support

2️⃣A group of 300+ Economists is similarly pessimistic.
➡️ This might be why they can't convince politicians to implement #CarbonPricing

8/11

The Climate Premium has other good properties:

🟢Very few people think it is the worst option.

🟢It receives majority support from every demographic group.

🟢 It maximizes public support without wrecking public finances

7/11

🔍Results:

1️⃣ The Climate Premium receives 73% support – the highest of all schemes.

2️⃣ Redistributing the revenues equally is the second most popular scheme (69% support).

3️⃣ Transferring money to the state budget minimizes support

6/11

In the experiment:

- Subjects can buy a virtual product 📦which increases their earnings in the experiment

- Buying the product entails emitting CO2

- Subjects make two decisions: one with carbon pricing and one without

4/11

#EconSky 📉📈

A new simple way to boost support for carbon pricing!

New article in @natureportfolio.bsky.social

- Public support is maximized by a Climate Premium: a fixed, uniform, upfront compensation

- Experts are too pessimistic about public support

- A novel incentivized design.

🧵 + link👇