Using the Revenues from Carbon Pricing - Insights into the Acceptance and Perceptions of Affected Groups

Carbon pricing is a policy instrument that is very popular with researchers and many policy makers as well. This paper presents an empirical study carried out in Germany directly before the new national carbon pricing schemes were implemented for the non-ETS sector. The study focuses on the perceptions of different revenue use options by population groups particularly affected by the impact of carbon pricing: single parents with commutes, social welfare recipients, long-distance commuters as well as pensioners with large homes. The empirical research consisted of twelve focus groups with 83 participants, including a short questionnaire. The findings show a good level of acceptance for carbon pricing in view of the need to mitigate climate change and the widespread expectation that the mitigation impact results from the use of revenues rather than from the carbon pricing instrument itself. The preferred options for revenue use are public investments in sustainable transport and climate protection. There was less support for reducing electricity prices or a “climate dividend”. Overall, the topics discussed were often perceived as complex and misunderstandings were prevalent despite the explanations given. Conclusions are drawn concerning the design and communication of carbon pricing schemes.