New research has shed light on a critical obstacle facing efforts to reduce carbon emissions, the willingness of drivers to accept higher fuel costs. A pair of simultaneous surveys, designed to explore this issue, found that consumers’ readiness to endure economic sacrifices depends heavily on their understanding of climate change’s tangible effects. Details of the results and analysis can be found in the journal Interdisciplinary Environmental Review.
In the study, participants were divided into two groups. One, known as the “treatment group,” was asked to read a short article outlining the destructive impacts of climate change across the USA. The other group, the “control group,” received no such information. The contrast between responses from the two groups was stark. Those exposed to the information were significantly more willing to accept increased fuel prices in the interest of reducing carbon emissions, while those without that context expressed little willingness, if any, to do so.
The findings, from John McCollough of Lamar University in Beaumont, Texas, USA, highlight the importance of public awareness in environmental policymaking. Carbon emissions are described by economists as a “public bad,” a term referring to harmful by-products of everyday activities. Burning fossil fuels for transport and the associated carbon emissions impose costs on society at large. To mitigate a “public bad”, one widely used strategy is to raise the associated costs through taxation. In this instance, the logic is that by making carbon-intensive activities more expensive, individuals and businesses will be driven to change their behaviour. They might drive less or invest in cleaner vehicles, or even adopt alternative forms of transport.
The strategy is embodied in the concept of a carbon or fuel tax. Economists broadly regard such taxes as among the most efficient, cost-effective, and administratively simple means of reducing greenhouse gas emissions. The USA remains an outlier among developed economies. It has the lowest fuel taxes among member countries of the Organisation for Economic Co-operation and Development and ranks high in per capita carbon emissions.
The relationship between fuel taxation and emissions is well-documented. Countries that impose higher taxes on fuel consistently record lower per capita levels of carbon dioxide emissions. Yet despite its economic efficiency, raising fuel prices is politically contentious. Higher taxes would mean higher household expenses, potentially reshaping spending patterns and lifestyle choices. While some households might reduce driving, purchase fuel-efficient vehicles, or shift to public transit, but without increased understanding of why such changes are necessary, there will inevitably be pushback from the public.
The research suggest that designing effective climate policies is not enough. Governments need to communicate the reality of climate change and connect directly with people’s experiences. The success of carbon pricing initiatives, and possibly of broader climate strategies, depends not only on sound economic reasoning but also on cultivating public trust and engagement.
McCollough, J. (2025) ‘Environmental awareness and consumers’ willingness to accept higher fuel prices to reduce carbon emissions’, Interdisciplinary Environmental Review, Vol. 24, No. 2, pp.112–123.