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PolWe study the evolution of voter support for climate policies aimed at containing the effect of climate risk, as weather conditions worsens at a time of rising economic inequality. Households differ in age, beliefs and income, and the scale of intervention to preserve habitable land reflects the preference of the majority coalition. Economic polarization tightens conditions for more households, while rising climate risk increases support for public adaptation. If beliefs on attainable impact are not too dispersed, an initially coalition of young and old pessimists might tip towards a coalition of old optimists and young pessimists, leading to a jump in support for public action.A steady rise in inequality may ultimately induce a second political tipping point, towards a coalition of the low-income old and young pessimists, although the effects on public adaptation are weaker. Public intervention is undermined by pessimism about the efficacy of public adaptation and the "tragedy of the horizon" effect, as voters only partially internalize benefits for future generations. This prevents public adaptation from converging to the long-term social optimum even when political support is highest

Author

Listed:
  • Yasmine van der Straten

    (University of Amsterdam)

  • Enrico Perotti

    (University of Amsterdam, CEPR)

  • Frederick van der Ploeg

    (University of Oxford, CEPR, CESifo and University of Amsterdam)

Abstract

No abstract is available for this item.

Suggested Citation

  • Yasmine van der Straten & Enrico Perotti & Frederick van der Ploeg, 2024. "PolWe study the evolution of voter support for climate policies aimed at containing the effect of climate risk, as weather conditions worsens at a time of rising economic inequality. Households differ," Tinbergen Institute Discussion Papers 24-013/IV, Tinbergen Institute.
  • Handle: RePEc:tin:wpaper:20240013
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    References listed on IDEAS

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    More about this item

    Keywords

    Climate Change Adaptation; Economic Inequality; Tragedy of the Horizon; Political Tipping Points;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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