WILLINGNESS TO PAY CARBON TAX FOR OBTAINING ENVIRONMENTAL GOVERNANCE AND SUSTAINABILITY Yenni Mangoting (a*), Patricia Louisa (b), Vanessa Audrey Yonatan (c)
(a*) Tax Accounting, Accounting Department, Petra Christian University
(b) Tax Accounting, Accounting Department, Petra Christian University
(c) Tax Accounting, Accounting Department, Petra Christian University
Abstract
Research Problem - Extensive use of fossil fuels results in high levels of carbon emissions, which can adversely affect health and endanger human life. This problem raises the urgency for the government to create sustainable environmental governance, including establishing carbon tax regulation in Indonesia. Threats of death caused by high carbon emissions create terror that can affect individual willingness to pay carbon taxes. This research problems are aimed to know the factors that can influence the individual willingness to pay carbon taxes, from the perspective of terror management theory and level of education.
Objectives - This research aims to understand the behavior of a person who has an important role in reducing CO2 emissions as measured through the willingness to pay carbon tax which is based on psychological factors, namely self-esteem, mortality salience, health consciousness, and demographic factor such as education.
Research design/method - This research is using a survey method. The data are collected through questionnaires using Google Forms with age requirements over 17 years old. We obtained 150 responses which were analyzed using PLS-SEM.
Findings - The results show that self-esteem, mortality salience, and health consciousness are positively related to the willingness to pay carbon taxes. The demographic variable in the form of education shows a significant positive effect on the desire to pay carbon taxes. This research contributes toward regulators to accelerate the establishment of carbon taxation regulation for environmental governance and sustainability based on willingness to pay carbon taxes.
Keywords: Willingness to pay, Self-esteem, Health consciousness, Mortality salience, Carbon tax
