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Paradigm Challenge  /  Economics

Voting for the Green Party gives you a quick boost in solar power, but weirdly enough, it causes the total capacity to drop in the long run.

You would expect pro-environmental political wins to have a compounding or at least stable effect on renewable energy. However, the study found a long-term reversal, where initial gains in solar capacity were eventually wiped out, primarily due to a decline in residential solar installations.

Original Paper

From Votes to Megawatts: Policy Outcomes of Local Elections

Konrad Bierl, Klaus Eisenack, Angelika von Dulong, Peter Wieland

SSRN  ·  6464019

Do democratic elections affect policy outcomes, and how do these effects evolve over time? Existing evidence is mixed, focusing on federal elections in two-party systems using RDDs. We study municipal elections in Germany’s multiparty system, examining how electoral support for the pro-environmental Green Party affects photovoltaic power capacity investment. Exploiting quasi-random variation generated by staggered elections, we implement a triple difference-in-differences design using panel data