Changing Political Fortunes?

Abstract

Cognitive biases and the reinforcement of these biases—inadvertent by pollsters, to some extent purposeful by politicians—have seemingly created a deep political pit from which carbon taxes will never emerge to see the light of day. Carbon taxes mean higher energy prices, and it is easy for anti-tax groups to tap into consumers’ fears and squeeze out other considerations.¹ But although these biases are widespread, they are fragile and fixable. Misperceptions and errant decision-making processes can be corrected, and information can be supplied to help citizens evaluate different policy instruments.