Abstract: In most countries, wealth inequality is much higher than income inequality, spurring debates about wealth taxation. However, it is unclear if voters are aware of these differences. In a large scale survey experiment among a representative Dutch population (N=4,359), we study voters' perceptions of income and wealth distributions, and connect their views to administrative data about their own income and wealth. Despite a primer on the definition of income and wealth, respondents underestimate the  difference in inequality on the two measures by a factor of 10. Moreover, they use information about the income distribution to make predictions about the wealth distribution and vice versa, even when information about both is provided. An information intervention about actual inequality levels and personal ranks in the income/wealth distribution has an impact on the perceived inequality and perceived fairness, but little effect on policy preferences. Thus, voters  differentiate little between wealth and income distributions. We discuss implications for political debates about inequality and wealth taxation.

Abstract: We document majority support for policies entailing global redistribution and climate mitigation. Recent surveys on 40,680 respondents in 20 countries covering 72% of global carbon emissions show strong support for an effective and progressive way to combat climate change and poverty: a global carbon price funding a global basic income, called the “Global Climate Scheme” (GCS). Using complementary surveys on 8,000 respondents in the U.S., France, Germany, Spain, and the U.K., we test several hypotheses that could reconcile strong stated support with a lack of salience in policy circles. A list experiment shows no evidence of social desirability bias, majorities are willing to sign a real-stake petition, and global redistribution ranks high in the prioritization of policies. Conjoint analyses reveal that a platform is more likely to be preferred if it contains the GCS or a global tax on millionaires. Universalistic attitudes are confirmed by an incentivized donation. In sum, our findings indicate that global policies are genuinely supported by a majority of the population. Public opinion is therefore not the reason that they do not prominently enter political debates.

Abstract: We study optimal fiscal policy to address climate change and inequality. We theoretically characterize optimal carbon and income taxes, and quantify them for the US economy with the climate model calibrated to DICE. In contrast to the representative-agent setting, we find that (i) tax distortions have a negligible effect on the optimal carbon tax; (ii) inequality only slightly reduces it; (iii) the revenue from carbon taxes is optimally split halfway between reducing tax distortions and increasing transfers. Unlike the double-dividend policy, optimal carbon taxation has progressive welfare effects and low-income households benefit even in the short run.

Abstract: To accept carbon pricing, citizens desire viable alternatives to fossil-fuel based options. As inflation and higher interest rates have exacerbated access barriers for capital-intensive green substitutes, the political success of carbon pricing will be measured by how well policy design enables consumers to switch.

Abstract: Using a representative survey, we find that after the Yellow Vests movement, French people would largely reject a Tax & Dividend policy, i.e. a carbon tax whose revenues are redistributed uniformly to each adult. However, they overestimate their net monetary loss, wrongly think the policy is regressive, and do not perceive it as environmentally effective. We show that changing people’s beliefs about the tax incidence and effectiveness can largely increase support. Yet, beliefs change little following our informational treatments. Indeed, if overly pessimistic beliefs cause tax rejection, they also result from it through motivated reasoning, which manifests what we define as "tax aversion". 

Abstract: This paper studies the role of preferences on the link between disasters, growth, and welfare. An endogenous growth model with endogenous disasters is presented in which one can derive closed-form solutions with recursive preferences. The model distinguishes disaster risks and disaster strikes and highlights the numerous m,echanisms through which they may affect growth. It is shown that separating aversion to risk from the elasticity of inter-temporal substitution bears critical implications that enable to better understand these mechanisms. In a calibration of the model based on empirical evidence about disaster impacts in the U.S., it is shown that precautionary savings are unlikely to be sufficient to generate a positive link between disasters and growth as sometimes encountered in the empirical literature. The paper also assesses the impact of disasters on welfare and highlights the large benefits that could be obtained by enhancing insurance coverage.

Abstract: This paper proposes a micro-simulation assessment of the distributional impacts of the French carbon tax. It shows that the policy is regressive, but could be made progressive by redistributing the revenue through a flat-recycling. However, it would still generate large horizontal distributive effects and harm an important share of low-income households. The determinants of the tax incidence are characterized precisely, and alternative targeted transfers are simulated on this basis. The paper shows that given the importance of unobserved heterogeneity in the determinants of energy consumption, horizontal distributive effects are much more difficult to tackle than vertical ones.

Abstract: This paper aims to assess the prospects for French climate policies after the Yellow Vests crisis halted the planned increase in the carbon tax. From a large representative survey, we elicit knowledge, perceptions and values over climate change, we examine opinions relative to carbon taxation, and we assess support for other climate policies. Specific attention is given to the link between perceptions of climate change and attitudes towards policies. The paper also studies in detail the determinants of attitudes in terms of political and socio-demographic variables. Among many results, we find limited knowledge but high concern for climate change. We also document a large rejection of the carbon tax but majority support for stricter norms and green investments, and reveal the rationales behind these preferences. Our study entails policy recommendations, such as an information campaign on climate change. Indeed, we find that climate awareness increases support for climate policies but no evidence for the formation of opinions through partisan cues as in the US, suggesting that better access to science could foster support for climate policies.