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Fickle environmental attitudes and cleantech underinvestment

Author

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  • Mahmoud A. El-Gamal
  • Amy Myers Jaffe
  • Saskia Salak

Abstract

We show in two steps why clean-energy investment is too low without sufficient government incentives: Energy companies’ cleantech investments rise and fall with oil prices, which drive their revenues. Thus, these companies resist political and stakeholder pressure to invest in clean energy when oil prices are low. In the meantime, US public opinion surveys show that environmental sentiments fall when oil prices are high, thus limiting political and stakeholder pressure for cleantech investment when energy companies’ revenues are plentiful.

Suggested Citation

  • Mahmoud A. El-Gamal & Amy Myers Jaffe & Saskia Salak, 2026. "Fickle environmental attitudes and cleantech underinvestment," Applied Economics Letters, Taylor & Francis Journals, vol. 33(9), pages 1432-1436, May.
    • Handle: RePEc:taf:apeclt:v:33:y:2026:i:9:p:1432-1436
    DOI: 10.1080/13504851.2024.2430712
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