The ECB’s Climate Activities and Public Trust

Sandra Eickmeier and Luba Petersen

CAMA Working Papers from Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University

Abstract: Central banks, including the European Central Bank (ECB), are increasingly involved in climate-related initiatives. This study uses a June 2023 survey of German households to gauge public support for the ECB’s climate engagement. Our findings reveal that 69% of households report increased trust in the ECB due to its climate actions, with most noting a mild boost in trust. These households primarily value the ECB’s broader scope and concern. A minority, comprising 17% and 20% respectively of all households, express concerns about potential compromises to price stability or independence. In contrast, a larger group (23% of all households) believes that the ECB’s climate efforts help the institution better achieve its core objectives. Additionally, our analysis of an information intervention reveals that the ECB’s climate actions have minimal effect on overall household inflation expectations. Finally, an internal survey of central bankers reveals that while they accurately gauge the ECB’s climate activities’ effect on households’ trust, they tend to overestimate their impact on inflation expectations. In sum, our results indicate public endorsement of the ECB’s climate-related endeavors.

Keywords: central bank trust; central bank credibility; inflation expectations; cli-mate change; green policies; survey; central bank communication; uncertainty (search for similar items in EconPapers)
JEL-codes: C93 D84 E59 E7 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2024-10
New Economics Papers: this item is included in nep-ban, nep-cba, nep-eec, nep-ene, nep-env, nep-mon and nep-soc
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Persistent link: https://EconPapers.repec.org/RePEc:een:camaaa:2024-62

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