Environmental Concern and Environmental Tax Awareness in Shaping Public Acceptance of Carbon Tax

Muhammad Ilmi; Grimonia Pertiwi; Gabriella Debora; Agya Larasati; Agung Budi

doi:10.69725/jipi.v2i2.300

Authors

Muhammad Ilmi University of Indonesia
Grimonia Pertiwi University of Indonesia
Gabriella Debora University of Indonesia
Agya Larasati University of Indonesia
Agung Budi University of Indonesia

DOI:

https://doi.org/10.69725/jipi.v2i2.300

Keywords:

Carbon tax, Environmental concern, Environmental tax awareness, Public acceptance, Policy legitimacy

Abstract

Purpose — This study aims to examine the direct and indirect effects of environmental concern and environmental tax awareness
on public acceptance of carbon tax, emphasizing the interaction between affective and cognitive determinants.
Design/methodology/approach — A quantitative approach is employed using a cross-sectional survey design. Data were collected
from 61 respondents and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test direct and
mediating relationships among constructs.
Findings — The results reveal that environmental concern positively influences public acceptance of carbon tax but negatively
affects environmental tax awareness, indicating a gap between pro-environmental attitudes and policy understanding. Furthermore,
environmental tax awareness has a significant negative effect on public acceptance, suggesting that increased knowledge may lead
to more critical evaluation of policy fairness and economic burden. However, mediation analysis shows that environmental tax
awareness significantly mediates the relationship between environmental concern and public acceptance, highlighting its role as a
cognitive bridge in translating environmental values into policy support.
Originality/value — This study contributes to the literature by integrating the Theory of Planned Behavior (TPB) and Value-
Belief-Norm (VBN) theory within a dual-path framework, offering a nuanced understanding of how affective and cognitive factors
interact in shaping public acceptance of carbon tax.
Practical implications — The findings suggest that policymakers should prioritize transparent communication, equitable policy
design, and public education to enhance trust and social legitimacy of carbon taxation.

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Author Biographies

Muhammad Ilmi, University of Indonesia

Fiscal Administration Undergraduate Student
Grimonia Pertiwi, University of Indonesia

Fiscal Administration Undergraduate Student
Gabriella Debora, University of Indonesia

Fiscal Administration Undergraduate Student
Agya Larasati, University of Indonesia

Fiscal Administration Undergraduate Student
Agung Budi, University of Indonesia

Fiscal Administration Undergraduate Student

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