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Climate policy under economic uncertainty: confidence in the welfare state and support for carbon taxation

Published online by Cambridge University Press:  12 August 2026

Jaewook Lee*
Affiliation:
Department of Economics, Leiden University, The Netherlands
Marcello Natili
Affiliation:
Department of Social and Political Studies, University of Milan, Italy
*
Corresponding author: Jaewook Lee; Email: j.lee@law.leidenuniv.nl
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Abstract

The climate crisis is urgent, yet public support for fossil fuel taxation remains low. Existing research attributes this to material interests, particularly concerns about the regressive nature of consumption taxes. This connects to the literature on the emerging “eco-social divide,” which emphasizes tensions between environmental and equity concerns while leaving potential synergies understudied. Drawing on policy feedback theory, we argue that satisfaction with existing social policies shapes how individuals perceive the risks of carbon taxation. Using original survey data from seven European countries (n = 10,968), we find that income difficulty and dissatisfaction with social policies reduce support for fossil fuel taxation. Perceived employment risk, contrary to expectations, is positively associated with support, and this relationship is amplified by social policy satisfaction. Confidence in welfare institutions therefore appears to facilitate support for climate policy, pointing to social protection and policy feedback as central to building coalitions for the green transition.

Information

Type
Research Article
Creative Commons
Creative Common License - CCCreative Common License - BY
This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (https://creativecommons.org/licenses/by/4.0/), which permits unrestricted re-use, distribution and reproduction, provided the original article is properly cited.
Copyright
© The Author(s), 2026. Published by Cambridge University Press
Figure 0

Figure 1. Figure 1 long description.Distributions of fossil fuel tax support, economic vulnerability, and social policy satisfaction.

Figure 1

Table 1. Cross-national means of key variablesTable 1 long description.

Figure 2

Table 2. Economic risks and fossil fuel tax supportTable 2 long description.

Figure 3

Table 3. Moderating role of social policy satisfactionTable 3 long description.

Figure 4

Figure 2. Moderation effect of social policy satisfaction on employment risk.

Figure 5

Table 4. Comparing employment risk types and fossil fuel tax supportTable 4 long description.

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