Discussion Paper Details
Please find the details for DP16273 in an easy to copy and paste format below:
Title: Are Climate Change Policies Politically Costly?
Author(s): Davide Furceri, Michael Ganslmeier and Jonathan D. Ostry
Publication Date: June 2021
Keyword(s): climate change, Climate change policies, political cost and Political Support
Programme Area(s): International Macroeconomics and Finance and Public Economics
Abstract: Are policies designed to avert climate change (Climate Change Policies, or CCPs) politically costly? Using data on governmental popular support and the OECD's Environmental Stringency Index, we find that CCPs are not necessarily politically costly: policy design matters. First, only market-based CCPs (such as emission taxes) generate negative effects on popular support. Second, the effects are muted in countries where non-green (dirty) energy is a relatively small input into production. Third, political costs are not significant when CCPs are implemented during periods of low oil prices, generous social insurance and low inequality.
For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=16273
Furceri, D, Ganslmeier, M and Ostry, J. 2021. 'Are Climate Change Policies Politically Costly?'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=16273