Are Climate Change Policies Politically Costly?

Davide Furceri, Michael Ganslmeier and Jonathan Ostry

No 2021/156, IMF Working Papers from International Monetary Fund

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.

Keywords: EPS change; policy design; Policy implication; popular support; baseline model; Climate change; Climate policy; Fuel prices; Environmental policy; Natural disasters; Global (search for similar items in EconPapers)
Pages: 52
Date: 2021-06-04
New Economics Papers: this item is included in nep-agr, nep-ene, nep-env, nep-ias and nep-pol
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Citations: View citations in EconPapers (6)

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Related works:
Journal Article: Are climate change policies politically costly? (2023)
Working Paper: Are Climate Change Policies Politically Costly? (2021)
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