Attitudes to the Green Transition and Willingness to Pay in Emerging Markets: Concerned but Not Paying
While individuals in emerging markets are concerned about climate change, such concerns do not necessarily translate into a willingness to pay for environmental policies. Using rich data for 37 economies, mostly from emerging markets in Europe, the Caucasus, Central Asia and parts of North Africa an...
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| Format: | Article |
| Language: | English |
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Magyar Nemzeti Bank (Central Bank of Hungary)
2025-03-01
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| Series: | Financial and Economic Review |
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| Online Access: | https://hitelintezetiszemle.mnb.hu/sw/static/file/fer-24-1-st1-guzman-koczan.pdf |
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| _version_ | 1850146988882919424 |
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| author | Pablo García Guzmán Zsóka Kóczán |
| author_facet | Pablo García Guzmán Zsóka Kóczán |
| author_sort | Pablo García Guzmán |
| collection | DOAJ |
| description | While individuals in emerging markets are concerned about climate change, such concerns do not necessarily translate into a willingness to pay for environmental policies. Using rich data for 37 economies, mostly from emerging markets in Europe, the Caucasus, Central Asia and parts of North Africa and the Middle East, we empirically examine correlations with willingness to pay for environmental policies. We show that, beyond ability to pay, people who expect to be better off in the future, who are more patient and who trust the government are all more likely to be willing to pay for policies that mitigate climate change. Our results thus suggest that measures that increase people’s incomes, build trust in government, reduce corruption and increase the transparency and efficiency of government spending could help boost support for green policies. Policies may also receive greater support if they take the form of subsidies, where the costs in terms of higher taxes are less salient. |
| format | Article |
| id | doaj-art-01dfa60e426642f4b37e2e37085a00d6 |
| institution | OA Journals |
| issn | 2415-9271 2415-928X |
| language | English |
| publishDate | 2025-03-01 |
| publisher | Magyar Nemzeti Bank (Central Bank of Hungary) |
| record_format | Article |
| series | Financial and Economic Review |
| spelling | doaj-art-01dfa60e426642f4b37e2e37085a00d62025-08-20T02:27:41ZengMagyar Nemzeti Bank (Central Bank of Hungary)Financial and Economic Review2415-92712415-928X2025-03-0124152810.33893/FER.24.1.5Attitudes to the Green Transition and Willingness to Pay in Emerging Markets: Concerned but Not PayingPablo García Guzmán0https://orcid.org/0009-0004-1111-9848Zsóka Kóczán1https://orcid.org/0000-0001-6653-6877European Bank for Reconstruction and DevelopmentEuropean Bank for Reconstruction and DevelopmentWhile individuals in emerging markets are concerned about climate change, such concerns do not necessarily translate into a willingness to pay for environmental policies. Using rich data for 37 economies, mostly from emerging markets in Europe, the Caucasus, Central Asia and parts of North Africa and the Middle East, we empirically examine correlations with willingness to pay for environmental policies. We show that, beyond ability to pay, people who expect to be better off in the future, who are more patient and who trust the government are all more likely to be willing to pay for policies that mitigate climate change. Our results thus suggest that measures that increase people’s incomes, build trust in government, reduce corruption and increase the transparency and efficiency of government spending could help boost support for green policies. Policies may also receive greater support if they take the form of subsidies, where the costs in terms of higher taxes are less salient.https://hitelintezetiszemle.mnb.hu/sw/static/file/fer-24-1-st1-guzman-koczan.pdfclimate changewillingness to paytrustdiscount rate |
| spellingShingle | Pablo García Guzmán Zsóka Kóczán Attitudes to the Green Transition and Willingness to Pay in Emerging Markets: Concerned but Not Paying Financial and Economic Review climate change willingness to pay trust discount rate |
| title | Attitudes to the Green Transition and Willingness to Pay in Emerging Markets: Concerned but Not Paying |
| title_full | Attitudes to the Green Transition and Willingness to Pay in Emerging Markets: Concerned but Not Paying |
| title_fullStr | Attitudes to the Green Transition and Willingness to Pay in Emerging Markets: Concerned but Not Paying |
| title_full_unstemmed | Attitudes to the Green Transition and Willingness to Pay in Emerging Markets: Concerned but Not Paying |
| title_short | Attitudes to the Green Transition and Willingness to Pay in Emerging Markets: Concerned but Not Paying |
| title_sort | attitudes to the green transition and willingness to pay in emerging markets concerned but not paying |
| topic | climate change willingness to pay trust discount rate |
| url | https://hitelintezetiszemle.mnb.hu/sw/static/file/fer-24-1-st1-guzman-koczan.pdf |
| work_keys_str_mv | AT pablogarciaguzman attitudestothegreentransitionandwillingnesstopayinemergingmarketsconcernedbutnotpaying AT zsokakoczan attitudestothegreentransitionandwillingnesstopayinemergingmarketsconcernedbutnotpaying |