Template-Type: ReDIF-Article 1.0

Author-Name: Pablo Garcia Guzman 
Author-Workplace-Name: European Bank for Reconstruction and Development
Author-Email: GARCIAGP@ebrd.com
Author-Person: 

Author-Name: Zsoka Koczan 
Author-Workplace-Name: European Bank for Reconstruction and Development
Author-Email: KoczanZ@ebrd.com
Author-Person: pko876

Title: Attitudes to the Green Transition and Willingness to Pay in Emerging Markets: Concerned but Not Paying

Abstract: 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.

Classification-JEL: Q01, Q54, Q56, Q58
Keywords: climate change, willingness to pay, trust, discount rate
Pages: 5-28
Volume: 24
Issue: 1
Year: 2025
File-URL: https://hitelintezetiszemle.mnb.hu/sw/static/file/fer-24-1-st1-guzman-koczan.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:24:y:2025:i:1:p:5-28