Who Stands Up to Persuade? Voluntary Influencers in Public Support for Pigouvian Taxation

Abstract

We examine how voters decide whether to impose influence on others’ attitudes towards policies in the context of Pigouvian taxation. Data from a controlled laboratory experiment show that people in general are reluctant to stand up to persuade others. Among those who are willing, both tax supporters and objectors are equally likely to volunteer and are equally persuasive. As a result, the overall negative attitude against Pigouvian taxes remains. Interestingly, more polarized views rather than information advantage increase the probability to stand up as first voters, irrespective of what those views are. These findings offer an explanation and suggestions to address the continuing low public support for social-welfare-enhancing tax policies.

Publication
R&R Economic Inquiry
Lingbo Huang
Lingbo Huang
Professor of Economics