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Fiscal environmentalism : Carbon arithmetic, objects of taxation, and the epistemic culture of economic expertise

Paulsson, Alexander LU (2026) In Sociological Review
Abstract

Economic policy instruments are commonly used to address environmental problems. This study examines the historical development of the carbon tax in Sweden. By using the concept of epistemic culture, this study shows how carbon emissions, rather than energy use alone, emerged as an object of taxation. While the leading politicians saw the carbon tax as an innovative instrument for demonstrating climate action, the experts responsible for designing and evaluating the tax were highly critical of the policy instrument itself. The economic experts generally supported the use of economic policy instruments, but in this specific case, they advised against it. A domestic carbon tax would not significantly reduce global emissions, they warned.... (More)

Economic policy instruments are commonly used to address environmental problems. This study examines the historical development of the carbon tax in Sweden. By using the concept of epistemic culture, this study shows how carbon emissions, rather than energy use alone, emerged as an object of taxation. While the leading politicians saw the carbon tax as an innovative instrument for demonstrating climate action, the experts responsible for designing and evaluating the tax were highly critical of the policy instrument itself. The economic experts generally supported the use of economic policy instruments, but in this specific case, they advised against it. A domestic carbon tax would not significantly reduce global emissions, they warned. Rather, it would disadvantage Swedish industry due to increasing competition driven by the loosening of capital controls. Yet, the carbon tax was introduced in 1991, albeit at a relatively low level so as not to impose additional costs of energy use on domestic industry. By situating this historical development within debates in the social studies of expertise and climate politics, this study shows how fiscal environmentalism emerged from the interplay between economists’ epistemic culture and the Social Democratic Party’s established practices of using tax-based policy instruments in their state-making efforts. In conclusion, the analysis connects to ongoing discussions about climate justice and the significance of governments—rather than markets—in pricing carbon.

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Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
epub
subject
keywords
carbon tax, environmental economics, epistemic culture, expertise, policy instrument
in
Sociological Review
publisher
SAGE Publications
external identifiers
  • scopus:105033381051
ISSN
0038-0261
DOI
10.1177/00380261261431695
project
Special-purpose money: Complementary digital currencies and the sustainable development goals
language
English
LU publication?
yes
additional info
Publisher Copyright: © The Author(s) 2026. This article is distributed under the terms of the Creative Commons Attribution 4.0 License (https://creativecommons.org/licenses/by/4.0/) which permits any use, reproduction and distribution of the work without further permission provided the original work is attributed as specified on the SAGE and Open Access pages (https://us.sagepub.com/en-us/nam/open-access-at-sage).
id
a126b8df-180f-4149-ae10-58f3f4f59338
date added to LUP
2026-04-05 22:51:29
date last changed
2026-04-07 13:47:37
@article{a126b8df-180f-4149-ae10-58f3f4f59338,
  abstract     = {{<p>Economic policy instruments are commonly used to address environmental problems. This study examines the historical development of the carbon tax in Sweden. By using the concept of epistemic culture, this study shows how carbon emissions, rather than energy use alone, emerged as an object of taxation. While the leading politicians saw the carbon tax as an innovative instrument for demonstrating climate action, the experts responsible for designing and evaluating the tax were highly critical of the policy instrument itself. The economic experts generally supported the use of economic policy instruments, but in this specific case, they advised against it. A domestic carbon tax would not significantly reduce global emissions, they warned. Rather, it would disadvantage Swedish industry due to increasing competition driven by the loosening of capital controls. Yet, the carbon tax was introduced in 1991, albeit at a relatively low level so as not to impose additional costs of energy use on domestic industry. By situating this historical development within debates in the social studies of expertise and climate politics, this study shows how fiscal environmentalism emerged from the interplay between economists’ epistemic culture and the Social Democratic Party’s established practices of using tax-based policy instruments in their state-making efforts. In conclusion, the analysis connects to ongoing discussions about climate justice and the significance of governments—rather than markets—in pricing carbon.</p>}},
  author       = {{Paulsson, Alexander}},
  issn         = {{0038-0261}},
  keywords     = {{carbon tax; environmental economics; epistemic culture; expertise; policy instrument}},
  language     = {{eng}},
  month        = {{03}},
  publisher    = {{SAGE Publications}},
  series       = {{Sociological Review}},
  title        = {{Fiscal environmentalism : Carbon arithmetic, objects of taxation, and the epistemic culture of economic expertise}},
  url          = {{http://dx.doi.org/10.1177/00380261261431695}},
  doi          = {{10.1177/00380261261431695}},
  year         = {{2026}},
}