Working Paper

Green Governments

Niklas Potrafke, Kaspar Wüthrich
CESifo, Munich, 2020

CESifo Working Paper No. 8726

We examine how Green governments influence environmental, macroeconomic, and education outcomes. We exploit that the Fukushima nuclear disaster in Japan gave rise to an unanticipated change in government in the German state Baden-Wuerttemberg in 2011. Using the synthetic control method, we find no evidence that the Green government influenced CO2 emissions or increased renewable energy usage overall. The share of wind power usage even decreased. Intra-ecological conflicts prevented the Green government from implementing drastic changes in environmental policies. The results do not suggest that the Green government influenced macroeconomic outcomes. Inclusive education policies caused comprehensive schools to become larger.

CESifo Category
Public Choice
Energy and Climate Economics
Keywords: climate change, Green parties, partisan politics, Fukushima nuclear disaster, energy and environmental policies, renewable energies, macroeconomic performance, comprehensive schools.
JEL Classification: C330, D720, E650, H700, I210, Q480, Q580