Citizen support for taxes and subsidies implemented to achieve more sustainable food consumption: the role of policy design and presentation

This study explores public support for policy packages including taxes and subsidies used either in isolation or in combination with the aim to reduce animal-based protein in diets. The purpose is to investigate if the support of these packages depends on how they are designed and presented. Previous studies reveal for instance that the design of a carbon tax e.g., in terms of tax level, revenue recycling options and geographical coverage significantly influence support. These results can be explained by concerns about living costs, competitiveness of the local economy, and effectiveness of the policy to reach its target. However, few studies (if any) have explored variations in public support for consumption taxes in the food domain. We have found no study investigating public support for subsidies implemented to promote sustainable diets. Our research aims to address this gap. We observe significant variation in support for different designs of taxes and subsidies in relation to how they might affect living costs. Other concerns, like the effectiveness of the policy package to reach its target, or whether a policy may hurt the national economy do not seem to be strong enough to influence support. It does seem however, that respondents tend to favor production-side subsidies over consumption-side subsidies, and that they generally dislike policies directed toward consumers, even in the form of subsidies. While our study contributes unique findings and insights that may extend beyond our Swedish sample, further investigations across domains as well as economic and political contexts are needed.

Keywords: consumption taxes, design and presentation, food policy, Policy design, public acceptance, subsidies

Lindahl, T.. 2024. Beijer Discussion Paper 280: Citizen support for taxes and subsidies implemented to achieve more sustainable food consumption: the role of policy design and presentation. Beijer Discussion Paper Series.