The influence of population aging on global climate policy

Abstract

AbstractWe study the connection between the demographic transition to an aging population and global climate policy ambition in the outcomes from recent international agreements on climate change: We test whether the share of the elderly in a population is a significant determinant of the quantity and ambition of a country’s policy actions against climate change. We use different indicators of climate policy ambition as measured by the Nationally Determined Contributions (NDC) of the Paris Agreement as updated in the Glasgow Climate Pact. We also use the number of climate change laws passed in a country to further test robustness of main results. We resort to instrumental variables as part of our identification strategy to account for potential endogeneity. Our econometric results indicate a negative association between the share of the elderly and both policy ambition in climate agreements and the intensity of regulatory initiatives to fight climate change. This suggests that the increasing political influence of the older population as a consequence of aging hinders climate policy ambition. Policy implications are discussed.