Do Gasoline Prices Impact Support for Climate Policies?

Abstract Do fuel prices impact individuals' support for climate policies? We use weekly retail gasoline prices combined with individual survey data from the International Panel on Climate Change and Air Pollution and the Gallup Poll Social Series to analyze this question. Leveraging time and regional variation in gasoline prices, we find that policy support for some (but not most) environmental policies decreases with higher fuel prices. Specifically, we find that in weeks where gasoline prices are higher, there is lower support for phasing out of combustion-engine cars and slightly lower support for protecting the environment at the risk of economic growth. Further analysis suggests that this is driven by increased worry about the availability and affordability of energy and worry about the economy and not by decreased concern about the environment. We further find that lower-income individuals and those identifying as more liberal, while more likely to support phasing out gasoline- and diesel-fueled vehicles, decrease their support faster with increases in gasoline prices. We do not find any significant association between gas prices and other climate policies surveyed on such as funding research into renewables, regulating CO2, and requiring companies to pay a carbon tax.