Assessing the Public Acceptability of Carbon Taxes Using Information Provision and Revenue Distributive Preferences in Nigeria

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Carbon tax has been shown to generate revenue and contribute to greenhouse gas reduction in several parts of the world, yet the lack of public support has continued to undermine its implementation in Africa. Using an experimental design, this study aims to determine the effect of information provision and distributive preferences of revenues on household acceptance of carbon tax in Nigeria. A total of 720 households will be selected and assigned randomly to three groups, treatment I (N = 240), treatment II (N = 240), and control (N = 240). The treatment groups will be provided with information on the benefits of carbon taxation and five revenue-use options to allocate tax revenues. Baseline and end-line data will be collected with a structured questionnaire. The probit model and double-difference estimation technique will be applied in data analysis. The outcome of this study will highlight factors that can facilitate public acceptance of carbon tax as well as inform policies and actions for attaining Nigeria’s Nationally Determined Contribution targets.

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Active
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Environment for Development initiative
Project | 6 December 2023