From Votes to Megawatts: Policy Outcomes of Local Elections

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

No 98, Berlin School of Economics Discussion Papers from Berlin School of Economics

Abstract: 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 (1990-2022). We find strongly time-dependent electoral effects. Electoral support generates sizable short-run increases in capacities (+3.4 MW/municipality), including anticipation effects. These effects reverse in the long-run (-4.2 MW/municipality), primarily driven by less residential capacity.

Keywords: Local elections; Municipal climate action; Renewable energy; Political parties; Triple difference-in-differences (search for similar items in EconPapers)
JEL-codes: C21 D78 Q48 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2026-06-19
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Persistent link: https://EconPapers.repec.org/RePEc:bdp:dpaper:0098

DOI: 10.48462/opus4-6275

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