The Urgency Of Carbon Accounting Based on Willingness to Pay Carbon Tax

Yenni Mangoting, Patricia Louisa, Vanessa Audrey Yonatan


Main Purpose - The research aims to understand human behavior that plays an important role in reducing CO2 emissions through the concept of WTP which is based on psychological factors, that cover self-esteem, mortality salience, and health consciousness along with demographic factors including income level, knowledge, education, and gender.

Method - This study used a survey method, where data was collected through questionnaires that were distributed online to respondents with ages over 17 years. This study collected 150 respondents and data were analyzed using PLS-SEM.

Main Findings - The results of the study show that the urgency to legitimize carbon taxes is seen as important by respondents. The average additional burden that respondents are willing to pay is Rp.25.000,- per month. Besides that, all psychological and demographic factors are proven can influence respondents' willingness to pay carbon taxes except for the relationship between income-WTP and self-esteem-health consciousness-WTP.

Theory and Practical Implications - The results of this analysis provide insight into the strong will of individuals that can encourage individuals to pay for losses due to carbon emissions based on TMT which will help the regulator to legitimize the implementation of carbon accounting followed by formulating the carbon tax regulations comprehensively as part of global climate governance. Moreover, regulators can focus on the principles of improving the quality of human life rather than just technical issues.

Novelty - This research helps to understand the WTP taxes associated with a psychological perspective within the TMT framework.


Willingness to pay; Self-esteem; Health consciousness; Mortality salience; Carbon tax

Full Text:



Ali, T., & Ali, J. (2020). Factors affecting the consumers’ willingness to pay for health and wellness food products. Journal of Agriculture and Food Research, 2, 100076.

Barus, E. B., & Wijaya, S. (2022). Penerapan Pajak Karbon Di Swedia Dan Finlandia Serta Perbandingannya Dengan Indonesia. JURNAL PAJAK INDONESIA (Indonesian Tax Review), 5(2), 256–279.

Becker, M. H., Haefner, D. P., Kasl, S. V., Kirscht, J. P., Maiman, L. A., & Rosenstock, I. M. (1977). Selected Psychosocial Models and Correlates of Individual Health-Related Behaviors. Medical Care, 15(5), 27–46.

Beeks, J. C., & Ziko, A. (2018). Internalizing Economic Externalities on the Macroeconomic Stage. Exploring and Expanding Paul Hawken’s The Ecology of Commerce: A Declaration of Sustainability for Globalized Solutions. European Journal of Sustainable Development Research, 2(1).

Benjamin, E. O., Hall, D., Sauer, J., & Buchenrieder, G. (2022). Are carbon pricing policies on a path to failure in resource-dependent economies? A willingness-to-pay case study of Canada. Energy Policy, 162, 112805.

Bornioli, A., Lewis-Smith, H., Smith, A., Slater, A., & Bray, I. (2019). Adolescent body dissatisfaction and disordered eating: Predictors of later risky health behaviours. Social Science & Medicine, 238, 112458.

Burke, B. L., Martens, A., & Faucher, E. H. (2010). Two Decades of Terror Management Theory: A Meta-Analysis of Mortality Salience Research. Personality and Social Psychology Review, 14(2), 155–195.

Dang, H. P., Rahimah, A., Lin, J. Y.-C., Truong-Dinh, B. Q., Glebanov, P. D., Raza, S. H., Li, N. R., & Cheng, J. M. (2021). What makes consumers willing to pay for carbon taxes–A view of terror management theory. Sustainable Production and Consumption, 28, 1192–1203.

Duan, H.-X., Yan-Li, L., & Yan, L. (2014). Chinese Public’s Willingness to Pay for CO2 Emissions Reductions: A Case Study from Four Provinces/Cities. Advances in Climate Change Research, 5(2), 100–110.

European Union. (2021). The Polluter Pays Principle: Inconsistent application across EU environmental policies and actions.


Fairlamb, S., Cinnirella, M., & Iahr, I. (2022). The proximal and distal effects of mortality salience on COVID‐19‐related health perceptions and intentions. Journal of Applied Social Psychology, 52(10), 965–976.

Falk, R. F., & Miller, N. B. (1992). A Primer for Soft Modeling. University of Akron.

Fleșeriu, C., Cosma, S. A., & Bocăneț, V. (2020). Values and Planned Behaviour of the Romanian Organic Food Consumer. Sustainability, 12(5), 1722.

Ghozali, I., & Latan, H. (2015). Partial Least Squares : Konsep, Teknik dan Aplikasi Menggunakan Program SmartPLS 3.0.

Goh, I. Z., & Matthew, N. K. (2021). Residents’ Willingness to Pay for a Carbon Tax. Sustainability, 13(18), 10118.

Goldenberg, J. L., & Arndt, J. (2008). The implications of death for health: A terror management health model for behavioral health promotion. Psychological Review, 115(4), 1032–1053.

Greenberg, J., Pyszczynski, T., & Solomon, S. (1986). The Causes and Consequences of a Need for Self-Esteem: A Terror Management Theory. In Public Self and Private Self (pp. 189–212). Springer New York.

Grewal, L., Hmurovic, J., Lamberton, C., & Reczek, R. W. (2019). The Self-Perception Connection: Why Consumers Devalue Unattractive Produce. Journal of Marketing, 83(1), 89–107.

Grimsrud, K. M., Lindhjem, H., Sem, I. V., & Rosendahl, K. E. (2020). Public acceptance and willingness to pay cost-effective taxes on red meat and city traffic in Norway. Journal of Environmental Economics and Policy, 9(3), 251–268.

Haltinner, K., & Sarathchandra, D. (2018). Climate change skepticism as a psychological coping strategy. Sociology Compass, 12(6), e12586.

Han, Z., Zeng, D., Li, Q., Cheng, C., Shi, G., & Mou, Z. (2019). Public willingness to pay and participate in domestic waste management in rural areas of China. Resources, Conservation and Recycling, 140, 166–174.

He, R., Luo, L., Shamsuddin, A., & Tang, Q. (2022). Corporate carbon accounting: a literature review of carbon accounting research from the Kyoto Protocol to the Paris Agreement. Accounting & Finance, 62(1), 261–298.

Hojnik, J., Ruzzier, M., Fabri, S., & Klopčič, A. L. (2021). What you give is what you get: Willingness to pay for green energy. Renewable Energy, 174, 733–746.

Hong, H. (2011). An Extension of the Extended Parallel Process Model (EPPM) in Television Health News: The Influence of Health Consciousness on Individual Message Processing and Acceptance. Health Communication, 26(4), 343–353.

Huang, X., & Ge, J. (2019). Electric vehicle development in Beijing: An analysis of consumer purchase intention. Journal of Cleaner Production, 216, 361–372.

Inglehart, R. (1995). Public Support for Environmental Protection: Objective Problems and Subjective Values in 43 Societies. PS: Political Science and Politics, 28(1), 57.


Jayanti, R. K., & Burns, A. C. (1998). The Antecedents of Preventive Health Care Behavior: An Empirical Study. Journal of the Academy of Marketing Science, 26(1), 6–15.

Jones, A., Winter, V. R., Pekarek, E., & Walters, J. (2018). Binge drinking and cigarette smoking among teens: Does body image play a role? Children and Youth Services Review, 91, 232–236.

Jones, B. A., Ripberger, J., Jenkins-Smith, H., & Silva, C. (2017). Estimating willingness to pay for greenhouse gas emission reductions provided by hydropower using the contingent valuation method. Energy Policy, 111, 362–370.

Kaloeti, D. V. S., & Ardhiani, L. N. (2020). The effect of self-esteem, attitude towards the body, and eating habit on cognitive reactivity. Psikohumaniora: Jurnal Penelitian Psikologi, 5(1), 57.

Kock, N. (2022). WarpPLS User Manual Version 8.0.

Kotchen, M. J., Boyle, K. J., & Leiserowitz, A. A. (2013). Willingness-to-pay and policy-instrument choice for climate-change policy in the United States. Energy Policy, 55, 617–625.

Kotchen, M. J., Turk, Z. M., & Leiserowitz, A. A. (2017). Public willingness to pay for a US carbon tax and preferences for spending the revenue. Environmental Research Letters, 12(9), 094012.

Kucher, A., Hełdak, M., Kucher, L., & Raszka, B. (2019). Factors Forming the Consumers’ Willingness to Pay a Price Premium for Ecological Goods in Ukraine. International Journal of Environmental Research and Public Health, 16(5), 859.

Kusumawati, A., Utomo, H. S., Suharyono, S., & Sunarti, S. (2020). Effects of sustainability on WoM intention and revisit intention, with environmental awareness as a moderator. Management of Environmental Quality: An International Journal, 31(1), 273–288.

Le Quéré, C., Jackson, R. B., Jones, M. W., Smith, A. J. P., Abernethy, S., Andrew, R. M., De-Gol, A. J., Willis, D. R., Shan, Y., Canadell, J. G., Friedlingstein, P., Creutzig, F., & Peters, G. P. (2020). Temporary reduction in daily global CO2 emissions during the COVID-19 forced confinement. Nature Climate Change, 10(7), 647–653.

Li, S., Liu, P., & Guo, Y. (2020). Study on the Effect of Exposure to Death Information and Perceived Personal Control on Healthy Food Choices (pp. 627–639).

Lo, A. Y. (2016). National income and environmental concern: Observations from 35 countries. Public Understanding of Science, 25(7), 873–890.

Ma, W., Zhang, Y., & Cui, J. (2021). Chinese future frequent flyers’ willingness to pay for carbon emissions reduction. Transportation Research Part D: Transport and Environment, 97, 102935.

Maestre-Andrés, S., Drews, S., Savin, I., & van den Bergh, J. (2021). Carbon tax acceptability with information provision and mixed revenue uses. Nature Communications, 12(1), 7017.

McLaughlin, C., Elamer, A. A., Glen, T., AlHares, A., & Gaber, H. R. (2019). Accounting society’s acceptability of carbon taxes: Expectations and reality. Energy Policy, 131, 302–311.

Molchanova, O. N., & Sokolova, T. Y. (2019). The role of self-esteem in response to self-threat. Vestnik of Saint Petersburg University. Psychology, 9(2).

Nelson, K. M., Partelow, S., Stäbler, M., Graci, S., & Fujitani, M. (2021). Tourist willingness to pay for local green hotel certification. PLOS ONE, 16(2), e0245953.

Nengzih, N. (2022). Carbon Emissions Intensity and Environmental Cost Effect to Corporate Financial Performance. Jurnal ASET (Akuntansi Riset), 14(2), 245–254.

Ngah, A. H., Jeevan, J., Salleh, N. H. M., Lee, T. T. H., & Ruslan, S. M. M. (2019). Willingness to Pay for Halal Transportation Cost: The Moderating Effect of Knowledge on the Theory of Planned Behavior. International Journal of Engineering and Advanced Technology, 8(6S3), 479–488.

OECD. (2011). Environmental Taxation A Guide for Policy Makers.

Ouyang, X., Zhuang, W., & Sun, C. (2019). Haze, health, and income: An integrated model for willingness to pay for haze mitigation in Shanghai, China. Energy Economics, 84, 104535.

Park, K. C. (2018). Understanding ethical consumers: willingness-to-pay by moral cause. Journal of Consumer Marketing, 35(2), 157–168.

Pyszczynski, T., Lockett, M., Greenberg, J., & Solomon, S. (2021). Terror Management Theory and the COVID-19 Pandemic. Journal of Humanistic Psychology, 61(2), 173–189.

Rajan, R., Shahina Mobil, S., Kasuma, J., Adenan, M. A., & Mejri, N. (2019). Influence of Perceived Quality and Self-Esteem on Women’s Purchase Intention: Luxury Makeup Brands. Journal of International Business, Economics and Entrepreneurship, 4(2), 73.

Ramseyer Winter, V., Kennedy, A. K., & O’Neill, E. (2017). Adolescent Tobacco and Alcohol Use: The Influence of Body Image. Journal of Child & Adolescent Substance Abuse, 26(3), 219–228.

Rotaris, L., & Danielis, R. (2019). The willingness to pay for a carbon tax in Italy. Transportation Research Part D: Transport and Environment, 67, 659–673.

Sætrevik, B., & Sjåstad, H. (2022). Mortality salience effects fail to replicate in traditional and novel measures. Meta-Psychology, 6.

Schmeichel, B. J., Gailliot, M. T., Filardo, E.-A., McGregor, I., Gitter, S., & Baumeister, R. F. (2009). Terror management theory and self-esteem revisited: The roles of implicit and explicit self-esteem in mortality salience effects. Journal of Personality and Social Psychology, 96(5), 1077–1087.

Shao, S., Tian, Z., & Fan, M. (2018). Do the rich have stronger willingness to pay for environmental protection? New evidence from a survey in China. World Development, 105, 83–94.

Sholihin, M., & Ratmono, D. (2013). Analisis SEM-PLS dengan WarpPLS 3.0.

Silva, R. A., West, J. J., Lamarque, J.-F., Shindell, D. T., Collins, W. J., Faluvegi, G., Folberth, G. A., Horowitz, L. W., Nagashima, T., Naik, V., Rumbold, S. T., Sudo, K., Takemura, T., Bergmann, D., Cameron-Smith, P., Doherty, R. M., Josse, B., MacKenzie, I. A., Stevenson, D. S., & Zeng, G. (2017). Future global mortality from changes in air pollution attributable to climate change. Nature Climate Change, 7(9), 647–651.

Solimun, Fernandes, A. A. R., & Nurjannah. (2017). Metode Statistika Multivariat Pemodelan Persamaan Struktural (SEM) Pendekatan WarpPLS. Universitas Brawijaya Press.

Solomon, S., Greenberg, J., & Pyszczynski, T. (2015). The Worm at the Core: On the Role of Death in Life. Random House.

Soto-Oñate, D., & Caballero, G. (2017). Oil spills, governance and institutional performance: The 1992 regime of liability and compensation for oil pollution damage. Journal of Cleaner Production, 166, 299–311.

Sutartib, Muh. (2021). TANTANGAN ADMINISTRASI PENGENAAN PAJAK KARBON DI INDONESIA. Jurnal Anggaran Dan Keuangan Negara Indonesia (AKURASI), 3(2), 38–55.

Tang, Q. (2017). Framework for and the Role of Carbon Accounting in Corporate Carbon Management Systems: A Holistic Approach. SSRN Electronic Journal.

Tianyu, J., & Meng, L. (2020). Does education increase pro-environmental willingness to pay? Evidence from Chinese household survey. Journal of Cleaner Production, 275, 122713.

Wei, S., Ang, T., & Jancenelle, V. E. (2018). Willingness to pay more for green products: The interplay of consumer characteristics and customer participation. Journal of Retailing and Consumer Services, 45, 230–238.

Wolfe, S. E., & Tubi, A. (2019). Terror Management Theory and mortality awareness: A missing link in climate response studies? WIREs Climate Change, 10(2).

Xie, B.-C., & Zhao, W. (2018). Willingness to pay for green electricity in Tianjin, China: Based on the contingent valuation method. Energy Policy, 114, 98–107.



  • There are currently no refbacks.

Creative Commons License

Jurnal ASET (Akuntansi Riset) is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License

View My Stats Visitor