Do local fuel prices affect remote working behaviors and carbon emission savings? Evidence from German panel data

Claudia Schmiedeberg and Dominik Schober

No 03/2026, Discussion Papers from Deutsche Bundesbank

Abstract: Given the importance of the transport sector for greenhouse gas emissions, both behavioral change will be needed to mitigate climate change in addition to technological innovation. We focus on the case of remote working as a less carbon-intensive substitute to commuting and analyze whether employees react to price incentives and work more from home in times of higher local fuel prices. Applying an instrumental variables approach based on panel data from Germany, we find moderate fuel price effects on remote working frequency, which are restricted to occupations with high skill- level and regions with limited alternatives to car commuting. We use these results to predict changes in remote working frequency as a consequence to increasing carbon prices as discussed for climate policy. Results indicate that even with ambitious carbon pricing, individual remote working frequency will increase modestly, causing only limited reductions in German national aggregate fuel and carbon emissions.

Keywords: fuel price; elasticity; remote working; telework; commuting; longitudinal (search for similar items in EconPapers)
JEL-codes: H23 Q41 Q48 Q54 Q58 R41 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:bubdps:337463

DOI: 10.71734/DP-2026-3

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