How political attitudes change with energy prices: Quasi-experimental evidence from Germany

We study the impact of the 2022-2023 energy crisis in Germany. We collect four waves of panel data to measure how political attitudes change with increasing energy prices for households. Our difference-in-differences estimation exploits unique features of the German energy sector, which allows for a quasi-experimental design. We show that increases in electricity payments lead to a decline in support for democratic institutions, with effects intensifying over time. The study sheds light on the consequences of economic shocks on political attitudes and has implications for the design of stringent climate policies.