Are Climate Change Policies Politically Costly?

55 Pages Posted: 14 Jul 2021

See all articles by Davide Furceri

Davide Furceri

International Monetary Fund (IMF)

Michael Ganslmeier

University of Oxford; University College London

Jonathan D. Ostry

Georgetown University; International Monetary Fund (IMF)

Date Written: June 2021


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.

JEL Classification: D72, J65, L43, L51, O43, O47, P16

Suggested Citation

Furceri, Davide and Ganslmeier, Michael and Ostry, Jonathan D., Are Climate Change Policies Politically Costly? (June 2021). CEPR Discussion Paper No. DP16273, Available at SSRN:

Davide Furceri (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Michael Ganslmeier

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

University College London ( email )

Gower Street
London, WC1E 6BT
United Kingdom

Jonathan D. Ostry

Georgetown University ( email )

Washington, DC 20057
United States

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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