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

Abstract

I 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.