It’s Not Easy Bein’ Green: A Wealth-Adaptation Lay Theory Increases People’s Support for Costly Environmental Action

Although a large majority of Americans are worried about climate change, only a small proportion support a carbon tax. What predicts people’s support for higher taxes, and particularly, higher environment consumption taxes (eco-taxes)? Nine studies (N=2,988) propose a novel antecedent—people’s beliefs about whether happiness tracks changes in wealth or whether happiness adapts to changes in wealth. Studies 1a-1b validated a wealth adaptation lay theory scale. Study 2a found that the more people believed that happiness adapts to wealth, the more they supported eco-taxes. A nationally representative study replicated these results (Study 2b). Studies 3a-3c identified a causal relationship: people supported eco-taxes more after reading articles arguing that happiness adapts to wealth than after reading articles arguing that appiness changes with wealth. Importantly, people exposed to the idea that happiness adapts to wealth believed that individuals and society would change their behavior and lifestyle to adjust to increased eco-taxes, and Therefore, supported eco-taxes more. Study 4 provided behavioral evidence: the more people believed that happiness adapts to wealth, the more money they donated to an environmental organization. Study 5 provided evidence for both generality and a boundary condition—the more people believed that happiness adapts to wealth, the more they supported a wide range of taxes, but only if it was specified that the proceeds would be used for societally beneficial purposes. The findings contribute to the science of lay theories by identifying a novel construct, and to environmental psychology by identifying a novel antecedent of people’s support for costly environmental action.