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May 22, 2024

SOEP Brown Bag Seminar

How resilient is public support for carbon pricing? Longitudinal evidence from Germany


May 22, 2024


Karl Popper Room
DIW Berlin
Room 2.3.020
Mohrenstr. 58
10117 Berlin


Stephan Sommer, Bochum University of Applied Sciences and RWI - Leibniz Institute for Economic Research

The success of climate policies depends crucially on the dynamics of public support. Using unique longitudinal data from three surveys conducted between 2019 and 2022, we study the variations of public support for carbon pricing in Germany. The period includes two relevant events: the introduction and ramping up of carbon pricing in Germany and the exogenous increase in energy prices following the Russian invasion of Ukraine. Using panel methods, we show that support is very persistent over time and might have increased slightly more recently. However, people who use gas heating decrease their support. Regarding revenue use, we detect that social cushioning has become more popular over time, while support for green spending has decreased. Our findings suggest that it is crucial to adapt climate policies in response of increased energy costs.