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

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