Environmental taxation triggers persistent psychological resistance to climate policy

Abstract

Environmental taxation is often lauded as an effective tool for changing consumer behavior, but it can also trigger substantial psychological resistance, especially among disproportionately affected groups, such as the Jewish ultra-Orthodox (Haredi) community, potentially creating a broad anti-environmental backlash. In the current study we provide novel empirical evidence for the psychological mechanisms that can drive such reactance and its potential long-term persistence. In 2021, Israel introduced a tax on single-use plastics, only to swiftly retract it amidst vehement political opposition and a change in government. We conducted six rounds of surveys within the Haredi population, known for its heavy use of single-use plastics. Immediately after the tax’s enactment, we found a substantial decrease in “pro-climate” positions. Regression analysis showed this change to be primarily driven by a sense of victimization—being unfairly singled out by the tax for political, rather than environmental, reasons. The economic burden of the tax played a lesser role. Two years after the tax was repealed, however, the decrease in “pro-climate” positions persisted, despite a decrease in sense of victimhood. These findings shed light on the potential negative and enduring psychological and political consequences of environmental taxation. They underscore the importance of addressing underlying grievances to foster genuine engagement with climate-related issues.