The challenge
France needed to cut emissions from road transport to meet its climate goals.
The case
In 2018 the French government planned further increases in its carbon tax on fuel as part of its climate strategy. For many people in rural and suburban areas who depend on cars, it came on top of rising fuel prices and felt like a tax on those with no alternative, while other tax cuts favored the wealthy. Mass 'yellow vest' protests began in November 2018, some turning violent, and by December the government suspended the increase. The carbon tax had reached €44.6 per tonne of CO2 in 2018 and was due to rise to €86.2 by 2022, but it was frozen at the 2018 level.
Why it didn't work
Climate taxes need to be seen as fair. Without visible compensation for people who depend on cars, the tax became a symbol of a government out of touch, setting back carbon pricing in France.
Sources
- Douenne, T., & Fabre, A. (2022). Yellow vests, pessimistic beliefs, and carbon tax aversion. American Economic Journal: Economic Policy.
- Douenne, T., & Fabre, A. (2022). Yellow vests, pessimistic beliefs, and carbon tax aversion. American Economic Journal: Economic Policy.
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