보고서(전자자료)
The Political Economy of Fossil Fuel Subsidy Removal: Evidence from Bolivia and Mexico
- 카테고리
- 국외자료
- 개인저자
- Mariza Montes de Oca Leon, Achim Hagen, Franziska Holz
- 발행기관
- IMF
- 발행년월
- 2024.11
- 페이지수
- 53p
- URL
요약
We study the impact of fossil fuel subsidy removal on presidential popularity using difference-indifference approaches and a stylized theoretical model. Analyzing macro level data for two subsidy removal events in Mexico and Bolivia in the early 2010s, we find evidence of a negative impact on presidential approval. Our theoretical probabilistic voting model predicts that the decline in popularity is driven by high income groups if subsidies are regressive, and that lack of trust in the government lowers popularity of the removal in all income groups. We confirm these predictions using micro level data for the Mexican subsidy removal event.