You Say Offset, I Say Tax? Labels and Political Affiliation Influence Preference

Would you pay more for certain products to save the planet? That

Columbia University psychological scientists David J. Hardisty, Eric J. Johnson, and Elke U. Weber wanted to see how the way in which a concept is framed (that is, how it is labeled) affects our attitude towards it. In this experiment, volunteers (who self-identified as Democrats, Republicans, or Independents) read about a program that would increase the cost of certain carbon-producing activities but would use the proceeds to fund alternative energies or carbon capture and sequestration. For half the volunteers this surcharge was labeled as a “carbon offset,” while for the other half it was labeled as a “carbon tax,” yet the details of the program were the same in each case. Participants then had to choose between two identical items (e.g., airline tickets), where one cost more, because it included the surcharge. Volunteers were asked to write down their thoughts about the decision, make a choice, and also indicate whether they would support legislation making the surcharge mandatory for all products of that type.

Psychological Science