IDEAS home Printed from https://ideas.repec.org/p/ces/ceswps/_12583.html

Reforming Fossil Fuel Subsidies with Citizens' Approval: The Case of Colombia

Author

Listed:
  • Charlotte Sophia Bez
  • Jorge A. Bonilla
  • Brigitte Castañeda Rodríguez
  • Jorge H. García
  • Leonard Missbach
  • Farah Mohammadzadeh Valencia
  • Jan Christoph Steckel

Abstract

Subsidizing fossil fuel consumption is at odds with climate change mitigation and a heavy burden on public budgets. Yet, efforts to reform such subsidies often face strong public opposition. We examine whether informing citizens about the effects of fossil fuel subsidy reform (FFSR) and complementary policy measures can increase public acceptance. We study this question using a novel survey experiment in Colombia, a country currently aiming at reforming existing fossil fuel subsidies. Building on Hoy et al (2026), our experiment exposes respondents to different information treatments, including from an innovative calculation of personal costs, and options for complementary policy measures. Leveraging a representative sample with more than 3,600 respondents, we find that information provision alone has limited effects on public support, as citizens rarely update their - at times - incorrect beliefs. In contrast, policy design is crucial. Complementing FFSR with additional measures shifts public opinion from majority opposition to majority support. Informing about the environmental effects of FFSR is most effective and strongly increases support for environmentally oriented complementary policies. Opposition to FFSR without complementary measures remains primarily driven by concerns about impacts on poorer households.

Suggested Citation

  • Charlotte Sophia Bez & Jorge A. Bonilla & Brigitte Castañeda Rodríguez & Jorge H. García & Leonard Missbach & Farah Mohammadzadeh Valencia & Jan Christoph Steckel, 2026. "Reforming Fossil Fuel Subsidies with Citizens' Approval: The Case of Colombia," CESifo Working Paper Series 12583, CESifo.
  • Handle: RePEc:ces:ceswps:_12583
    as

    Download full text from publisher

    File URL: https://www.ifo.de/DocDL/cesifo1_wp12583.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jun Rentschler & Morgan Bazilian, 2017. "Reforming fossil fuel subsidies: drivers, barriers and the state of progress," Climate Policy, Taylor & Francis Journals, vol. 17(7), pages 891-914, October.
    2. Matto Mildenberger & Erick Lachapelle & Kathryn Harrison & Isabelle Stadelmann-Steffen, 2022. "Limited impacts of carbon tax rebate programmes on public support for carbon pricing," Nature Climate Change, Nature, vol. 12(2), pages 141-147, February.
    3. Richard T. Carson & Jiajun Lu & Emily A. Khossravi & Gunnar Köhlin & Erik Sterner & Thomas Sterner & Dale Whittington, 2025. "The public’s views on climate policies in seven large global south countries," Nature Climate Change, Nature, vol. 15(9), pages 954-962, September.
    4. Stefanie Stantcheva, 2023. "How to Run Surveys: A Guide to Creating Your Own Identifying Variation and Revealing the Invisible," Annual Review of Economics, Annual Reviews, vol. 15(1), pages 205-234, September.
    5. Leonard Missbach & Jan Christoph Steckel, 2025. "Compensation Design for Carbon Pricing with Horizontal Heterogeneity: Evidence from 88 Countries," CESifo Working Paper Series 12258, CESifo.
    6. Missbach, Leonard & Steckel, Jan Christoph & Vogt-Schilb, Adrien, 2024. "Cash transfers in the context of carbon pricing reforms in Latin America and the Caribbean," World Development, Elsevier, vol. 173(C).
    7. Hoy, Christopher & Kim, Yeon Soo & Nguyen, Minh Cong & Sosa, Mariano & Tiwari, Sailesh, 2026. "Attitudes towards reducing fossil fuel subsidies: Evidence across 12 middle-income countries," Journal of Development Economics, Elsevier, vol. 178(C).
    8. Malcolm Fairbrother, 2022. "Public opinion about climate policies: A review and call for more studies of what people want," PLOS Climate, Public Library of Science, vol. 1(5), pages 1-14, May.
    9. Antoine Dechezleprêtre & Adrien Fabre & Tobias Kruse & Bluebery Planterose & Ana Sanchez Chico & Stefanie Stantcheva, 2025. "Fighting Climate Change: International Attitudes toward Climate Policies," American Economic Review, American Economic Association, vol. 115(4), pages 1258-1300, April.
    10. Magnus Bergquist & Andreas Nilsson & Niklas Harring & Sverker C. Jagers, 2022. "Meta-analyses of fifteen determinants of public opinion about climate change taxes and laws," Nature Climate Change, Nature, vol. 12(3), pages 235-240, March.
    11. McCulloch, Neil & Natalini, Davide & Hossain, Naomi & Justino, Patricia, 2022. "An exploration of the association between fuel subsidies and fuel riots," World Development, Elsevier, vol. 157(C).
    12. Ilyana Kuziemko & Michael I. Norton & Emmanuel Saez & Stefanie Stantcheva, 2015. "How Elastic Are Preferences for Redistribution? Evidence from Randomized Survey Experiments," American Economic Review, American Economic Association, vol. 105(4), pages 1478-1508, April.
    13. David Klenert & Linus Mattauch & Emmanuel Combet & Ottmar Edenhofer & Cameron Hepburn & Ryan Rafaty & Nicholas Stern, 2018. "Making carbon pricing work for citizens," Nature Climate Change, Nature, vol. 8(8), pages 669-677, August.
    14. Stefano Carattini & Andrea Baranzini & Philippe Thalmann & Frédéric Varone & Frank Vöhringer, 2017. "Green Taxes in a Post-Paris World: Are Millions of Nays Inevitable?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(1), pages 97-128, September.
    15. Beiser-McGrath, Liam & Bernauer, Thomas, 2024. "How do pocketbook and distributional concerns affect citizens’ preferences for carbon taxation?," LSE Research Online Documents on Economics 120995, London School of Economics and Political Science, LSE Library.
    16. Sara Maestre-Andrés & Stefan Drews & Jeroen van den Bergh, 2020. "Perceived fairness and public acceptability of carbon pricing: a review of the literature," Climate Policy, Taylor & Francis Journals, vol. 19(9), pages 1186-1204, July.
    17. Alberto Alesina & Stefanie Stantcheva & Edoardo Teso, 2018. "Intergenerational Mobility and Preferences for Redistribution," American Economic Review, American Economic Association, vol. 108(2), pages 521-554, February.
    18. Jeroen Barrez, 2024. "Public acceptability of carbon pricing: unravelling the impact of revenue recycling," Climate Policy, Taylor & Francis Journals, vol. 24(10), pages 1323-1345, November.
    19. Stefanie Stantcheva, 2021. "Understanding Tax Policy: How do People Reason?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(4), pages 2309-2369.
    20. Alesina, Alberto & La Ferrara, Eliana, 2005. "Preferences for redistribution in the land of opportunities," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 897-931, June.
    21. Sara Maestre-Andrés & Stefan Drews & Ivan Savin & Jeroen Bergh, 2021. "Carbon tax acceptability with information provision and mixed revenue uses," Nature Communications, Nature, vol. 12(1), pages 1-10, December.
    22. Stefan Drews & Jeroen C.J.M. van den Bergh, 2016. "What explains public support for climate policies? A review of empirical and experimental studies," Climate Policy, Taylor & Francis Journals, vol. 16(7), pages 855-876, October.
    23. Niklas Harring & Erik Jönsson & Simon Matti & Gabriela Mundaca & Sverker C. Jagers, 2023. "Cross-national analysis of attitudes towards fossil fuel subsidy removal," Nature Climate Change, Nature, vol. 13(3), pages 244-249, March.
    24. Daniel Kahneman & Jack L. Knetsch & Richard H. Thaler, 1991. "Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 193-206, Winter.
    25. Paasha Mahdavi & Michael L. Ross & Evelyn Simoni, 2025. "Fossil fuel subsidy reforms have become more fragile," Nature Climate Change, Nature, vol. 15(5), pages 569-574, May.
    26. Thomas Douenne & Adrien Fabre, 2022. "Yellow Vests, Pessimistic Beliefs, and Carbon Tax Aversion," American Economic Journal: Economic Policy, American Economic Association, vol. 14(1), pages 81-110, February.
    27. Gabriela Inchauste & David G. Victor, 2017. "The Political Economy of Energy Subsidy Reform," World Bank Publications - Books, The World Bank Group, number 26216, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jan Behringer & Lukas Endres & Maike Korsinnek, 2025. "Cost perceptions and the support for carbon pricing," IMK Working Paper 226-2025, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    2. Westberg, Nina Bruvik & Skjeflo, Sofie Waage & Kallbekken, Steffen, 2025. "The power of information: A survey experiment on public support for electricity price compensation schemes," Energy Policy, Elsevier, vol. 206(C).
    3. Schwarz, Antonia & Stünzi, Anna & Kaestner, Kathrin & Pahle, Michael & Sommer, Stephan, 2026. "Tailored information and the public support for carbon pricing in Germany," Ecological Economics, Elsevier, vol. 241(C).
    4. Bharadwaj, Preethika & Innocenti, Stefania, 2025. "Securing Public Support for Fuel Subsidy Reform: Experimental and Policymaker Insights from Malaysia," INET Oxford Working Papers 2025-03, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.
    5. Bretter, Christian & Schulz, Felix, 2025. "Public support for climate policies and its ideological predictors across countries of the Global North and Global South," Ecological Economics, Elsevier, vol. 233(C).
    6. Sterner, Thomas & Ewald, Jens & Sterner, Erik, 2024. "Economists and the climate," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 109(C).
    7. Ewald, Jens & Sterner, Thomas & Sterner, Erik, 2022. "Understanding the resistance to carbon taxes: Drivers and barriers among the general public and fuel-tax protesters," Resource and Energy Economics, Elsevier, vol. 70(C).
    8. Goerg, Sebastian & Pondorfer, Andreas & Stöhr, Valentina, 2025. "Public support for more ambitious climate policies: Empirical evidence from Germany," Ecological Economics, Elsevier, vol. 231(C).
    9. Ejelöv, Emma & Nässén, Jonas & Matti, Simon & Elinder, Liselott Schäfer & Larsson, Jörgen, 2025. "Public and political acceptability of a food tax shift – An experiment with policy framing and revenue use," Food Policy, Elsevier, vol. 130(C).
    10. Kaestner, Kathrin & Sommer, Stephan & Berneiser, Jessica & Henger, Ralph & Oberst, Christian, 2025. "Cost sharing mechanisms for carbon pricing: What drives support in the housing sector?," Energy Economics, Elsevier, vol. 142(C).
    11. Botelho Azevedo, Alda & Gonçalves, Inês & Pereira dos Santos, João, 2025. "Can’t Buy Me Home: Beliefs, Facts, and Policy in the Housing Affordability Crisis," IZA Discussion Papers 18073, IZA Network @ LISER.
    12. Oskar Lindgren & Erik Elwing & Mikael Karlsson & Sverker C. Jagers, 2024. "Public acceptability of climate-motivated rationing," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-9, December.
    13. Felix F. Mölk & Gottfried Tappeiner & Janette Walde, 2026. "Impact of policy design and elicitation method on carbon tax acceptability," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 28(2), pages 731-759, April.
    14. Antoine Dechezleprêtre & Adrien Fabre & Tobias Kruse & Bluebery Planterose & Ana Sanchez Chico & Stefanie Stantcheva, 2025. "Fighting Climate Change: International Attitudes toward Climate Policies," American Economic Review, American Economic Association, vol. 115(4), pages 1258-1300, April.
    15. Hoy, Christopher & Kim, Yeon Soo & Nguyen, Minh Cong & Sosa, Mariano & Tiwari, Sailesh, 2026. "Attitudes towards reducing fossil fuel subsidies: Evidence across 12 middle-income countries," Journal of Development Economics, Elsevier, vol. 178(C).
    16. Axsen, Jonn & Long, Zoe, 2025. "Accepting and implementing transport pricing policies for climate: A review of evidence and research gaps," Ecological Economics, Elsevier, vol. 238(C).
    17. Kantorowicz, Jaroslaw & Collewet, Marion & DiGiuseppe, Matthew & Vrijburg, Hendrik, 2024. "How to finance green investments? The role of public debt," Energy Policy, Elsevier, vol. 184(C).
    18. Sommer, Stephan & Konc, Théo & Drews, Stefan, 2023. "How Resilient is Public Support for Carbon Pricing? Longitudinal Evidence from Germany," Ruhr Economic Papers 1017, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    19. Eckert, Linus & Stagl, Sigrid & Schemel, Benjamin, 2025. "Social acceptance of climate policies: Insights from Austria," Ecological Economics, Elsevier, vol. 237(C).
    20. James Patterson & Ksenia Anisimova & Jasmin Logg-Scarvell & Cille Kaiser, 2025. "Reactions to policy action: socio-political conditions of backlash to climate change policy," Policy Sciences, Springer;Society of Policy Sciences, vol. 58(2), pages 287-320, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_12583. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/cesifde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.