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From Votes to Megawatts: Policy Outcomes of Local Elections

Author

Listed:
  • Konrad Bierl
  • Klaus Eisenack
  • Angelika von Dulong
  • Peter Wieland

Abstract

Do democratic elections affect policy outcomes, and how do these effects evolve over time? Existing evidence is mixed, focusing on federal elections in two-party systems using RDDs. We study municipal elections in Germany’s multiparty system, examining how electoral support for the pro-environmental Green Party affects photovoltaic power capacity investment. Exploiting quasi-random variation generated by staggered elections, we implement a triple difference-in-differences design using panel data (1990-2022). We find strongly time-dependent electoral effects. Electoral support generates sizable short-run increases in capacities (+3.4 MW/municipality), including anticipation effects. These effects reverse in the long-run (-4.2 MW/municipality), primarily driven by less residential capacity.

Suggested Citation

  • Konrad Bierl & Klaus Eisenack & Angelika von Dulong & Peter Wieland, 2026. "From Votes to Megawatts: Policy Outcomes of Local Elections," Berlin School of Economics Discussion Papers 0098, Berlin School of Economics.
    • Handle: RePEc:bdp:dpaper:0098
    DOI: 10.48462/opus4-6275
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    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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