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Examining the effects of gasoline prices on public support for climate policies

Author

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  • Ireri Hernandez Carballo

    (Bocconi University
    RFF-CMCC European Institute on Economics and the Environment (EIEE), Centro Euro-Mediterraneo sui Cambiamenti Climatici)

  • Matthew Ryan Sisco

    (RFF-CMCC European Institute on Economics and the Environment (EIEE), Centro Euro-Mediterraneo sui Cambiamenti Climatici
    Princeton University)

Abstract

Successful implementation of climate policies requires public acceptability. Fuel prices may impact policy support. Here we examine this relationship by analysing retail gasoline prices and individual-level survey data from Italian and US metropolitan areas. We do not find a significant association between gasoline prices and support for funding renewable energy research, regulating CO2 emissions or requiring companies to pay carbon taxes. We do find that support for phasing out combustion-engine cars decreases when gasoline prices increase. In exploratory analyses, we find that lower-income and more liberal individuals reduce their support more as gasoline prices rise. Using an additional US nationally representative survey dataset, we find that higher gasoline prices are associated with lower support for environmental protection when it comes at the risk of curving economic growth. The negative effects of gasoline prices on climate policy support do not seem driven by reduced environmental concerns.

Suggested Citation

  • Ireri Hernandez Carballo & Matthew Ryan Sisco, 2024. "Examining the effects of gasoline prices on public support for climate policies," Nature Energy, Nature, vol. 9(2), pages 219-227, February.
    • Handle: RePEc:nat:natene:v:9:y:2024:i:2:d:10.1038_s41560-024-01449-2
    DOI: 10.1038/s41560-024-01449-2
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