Environmental Tax Reform and willingness to pay for the environment: an empirical analysis on European micro data

Abstract

Using micro data from the European Value Survey (EVS) over 2008-2010, the paper investigates the individual and country variables that might affect the WTP for the environment of the 27 European Union (EU) Member States and in particular on the correlation of individual preferences to the existence/inexistence of the Environmental Tax Reform (ETR). Analyses, carried out by means of ordered logit OLS, logit and partial generalized ordered logit, provide useful insights to policy makers in fostering the tool of ETR, strongly promoted by the EU. Among others, our results show that WTP for the environment is higher in countries where an ETR has not been implemented. Moreover, further analyses conducted on the role of information highlight that being presumably aware of the ETR has a null/negative impact on the WTP for the environment.