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The Political Economy of Green Transition: Evidence from EU Allocation to French Municipalities

Author

Listed:
  • Jules Ducept

    (EU Tax - EU Tax Observatory, CEPS - Centre d'Economie de l'ENS Paris-Saclay - Université Paris-Saclay - ENS Paris Saclay - Ecole Normale Supérieure Paris-Saclay)

  • Antoine Ebeling

    (BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Samuel Ligonnière

    (CEPS - Centre d'Economie de l'ENS Paris-Saclay - Université Paris-Saclay - ENS Paris Saclay - Ecole Normale Supérieure Paris-Saclay)

Abstract

How will electoral competition drive the green transition? This paper examines the factors influencing the allocation of EU green funds to French municipalities using a novel dataset covering 980 municipalities across two multi-annual financial frameworks (2007-2013 and 2014-2020). We identify green projects based on the official taxonomy and explore both the economic and political determinants of these green and other projects. While political economy models highlight the role of political alignment between the mayor and higher levels of government, as well as the significance of municipalities with narrow electoral margins, we find distinct determinants for green projects. Political alignment significantly influences the demand for brown projects, but not for green projects. However, a narrow electoral margin increases the demand for both types of projects, especially green ones. We instrument this effect using the number of appeals filed by municipal opposition in French public courts. Our findings show how green voters and political contestability accelerate the green transition.

Suggested Citation

  • Jules Ducept & Antoine Ebeling & Samuel Ligonnière, 2024. "The Political Economy of Green Transition: Evidence from EU Allocation to French Municipalities," Working Papers hal-04854961, HAL.
    • Handle: RePEc:hal:wpaper:hal-04854961
    Note: View the original document on HAL open archive server: https://hal.science/hal-04854961v1
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