Securing Public Support for Fuel Subsidy Reform: Experimental and Policymaker Insights from Malaysia

Stefania Innocenti and Preethika Bharadwaj ()
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Preethika Bharadwaj: School of Geography and the Environment, University of Oxford

INET Oxford Working Papers from Institute for New Economic Thinking at the Oxford Martin School, University of Oxford

Abstract: Fossil fuel subsidies pose a significant barrier to achieving decarbonisation goals, yet their removal remains challenging due to concerns about public opposition and the potential impact on vulnerable groups. In Malaysia, where a petrol subsidy reform is underway, we conducted a mixed-methods study to explore strategies to increase public support for the reform. The study combined an incentivised experimental online survey (N=1,208) and interviews with policymakers (N=12). The survey tested redistributive and environmental framing interventions, while the interviews examined policymakers' perceptions of public support and its interplay with other reform considerations. Results show that emphasising the redistributive benefits of the reform can increase public support by at least 8 percentage points from a baseline of 25%, while the environmental framing increases support by at least 5 percentage points from a 39% baseline among prior opposers. Policymakers acknowledged the challenges posed by the unpopularity of subsidy reforms, but underscored the critical role of strategic communication in addressing public concerns. By crafting transparent and resonant narratives, policymakers can garner greater support for implementing the reform.

Keywords: climate policy; fuel subsidy reform; public support; communication; survey-based experiment; Malaysia (search for similar items in EconPapers)
Pages: 84
Date: 2025-01
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