Do economic conditions affect climate change beliefs and support for climate action? Evidence from the US in the wake of the Great Recession

Abstract

AbstractI show that climate skepticism increases with negative economic shocks and that the effects are concentrated among individuals in the labor force. I primarily employ a panel of US individuals in the period following the Great Recession, but also find consistent results with an alternative instrumental variables strategy. Among labor force participants, a one‐percentage point increase in the local unemployment rate leads to a three to five percentage point decrease in the probability of believing climate change is real and requires action. I conclude that support for climate change policies could depend on labor market conditions.