When Green Taxes Backfire

Environmental taxation is often lauded as an effective tool for changing consumer be­havior, but it can also trigger substantial psychological resistance, especially among dis­proportionately affected groups, such as the Jewish ultra-Orthodox (Haredi) community, potentially creating a broad anti-environmental backlash. In the current study we provide novel empirical evidence for the psychological mechanisms that can drive such reactance and its potential long-term persistence. In 2021, Israel introduced a tax on single-use plastics, only to swiftly retract it amidst vehement political opposition and a change in government. We conducted six rounds of surveys within the Haredi population, known for its heavy use of single-use plastics. Immediately after the tax’s enactment, we found a substantial decrease in “pro-climate” positions. Regression analysis showed this change to be primarily driven by a sense of victimization—being unfairly singled out by the tax for political, rather than environmental, reasons. The economic burden of the tax played a lesser role. Two years after the tax was repealed, however, the decrease in “pro-climate” positions persisted, despite a decrease in sense of victimhood. These findings shed light on the potential negative and enduring psychological and political consequences of envi­ronmental taxation. They underscore the importance of addressing underlying grievances to foster genuine engagement with climate-related issues.