Economics of climate attitudes in oil-rich regions
Kurronen, Sanna (15.12.2025)
Numero
13/2025Julkaisija
Bank of Finland
2025
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe20251215119571Tiivistelmä
The study aims to identify economic measures that enhance support for climate change mitigation, particularly in oil-rich communities. Using US county-level data, the research shows that the presence of oil reserves is negatively associated with the attribution of human influence to climate change and policies regulating CO2 emissions. Interestingly, a high current dependence on mineral extraction is associated with greater support for climate policies, while a decline in the mining-income share in oil-rich regions does not correlate with increased support for climate action, underpinning our hypothesis of persistence of climate attitudes. This suggests that a region’s current economic dependence on mining is not necessarily an obstacle to greater action to mitigate human impacts on climate. While evidence on the impact of extreme weather events on climate attitudes is mixed, we also present evidence that regional economic losses from natural disasters and rising home insurance costs may help convince people of the need for climate policy measures.
Julkaisuhuomautus
NON-TECHNICAL SUMMARY
FOCUS
This study explores what economic factors increase support for climate change policies in oil-rich regions, where skepticism about human-caused climate change is common. Using data from US counties, it examines how the presence of oil reserves, economic dependence on mining, and experiences with natural disasters or rising insurance costs influence people’s attitudes toward climate action.
CONTRIBUTION
The research bridges a gap in understanding how both historical oil wealth and current economic conditions shape climate attitudes. It uniquely distinguishes between the effects of simply having oil reserves and actually relying on mining income. The study also introduces the idea that rising home insurance costs and local economic losses from natural disasters can act as economic signals that may shift public opinion toward supporting climate policies.
FINDINGS
The study finds that people in oil-rich counties are less likely to believe in human-caused climate change and less likely to support climate policies. Surprisingly, a higher current dependence on mining is linked to greater support for climate action, while a decline in mining income does not increase support. Additionally, higher average incomes and increased costs from natural disasters or insurance premiums are associated with more favorable attitudes toward climate policies, suggesting that economic experiences can influence climate beliefs even in traditionally skeptical regions.
FOCUS
This study explores what economic factors increase support for climate change policies in oil-rich regions, where skepticism about human-caused climate change is common. Using data from US counties, it examines how the presence of oil reserves, economic dependence on mining, and experiences with natural disasters or rising insurance costs influence people’s attitudes toward climate action.
CONTRIBUTION
The research bridges a gap in understanding how both historical oil wealth and current economic conditions shape climate attitudes. It uniquely distinguishes between the effects of simply having oil reserves and actually relying on mining income. The study also introduces the idea that rising home insurance costs and local economic losses from natural disasters can act as economic signals that may shift public opinion toward supporting climate policies.
FINDINGS
The study finds that people in oil-rich counties are less likely to believe in human-caused climate change and less likely to support climate policies. Surprisingly, a higher current dependence on mining is linked to greater support for climate action, while a decline in mining income does not increase support. Additionally, higher average incomes and increased costs from natural disasters or insurance premiums are associated with more favorable attitudes toward climate policies, suggesting that economic experiences can influence climate beliefs even in traditionally skeptical regions.