Never let a serious crisis go to waste: The introduction of supplemental carbon taxes in Europe

Abstract

The literature on carbon pricing offers competing explanations for the introduction of carbon taxation. This article contributes to the field by highlighting the interaction of dynamic political factors and external pressures in explaining the timing of the adoption of carbon taxes. Focusing on the second wave of European countries, the study combines the multiple streams framework with qualitative comparative analysis to identify conditions favourable to the introduction of carbon taxes. Additional case studies on Ireland and Portugal serve to illuminate the reform process, especially the role of policy entrepreneurs. This approach yields three insights. First, fiscal crises provide political actors with an opportunity to raise environmental taxes. Second, the introduction of carbon taxation is most likely when push and pull factors come together, i.e. when high problem pressure coincides with governments receptive to environmental issues. Finally, the prospects of green policy entrepreneurs are strongly determined by their standing within the government.