Electricity Costs and Ideological Divide: A quantitative study on electricity prices and political ideology in Europe
2025 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE credits
Student thesis
Abstract [en]
This study explores the relationship between rising electricity prices and shifts in individuals' ideological positions along the left-right spectrum across Europe. Using quantitative analysis of electricity price data and Eurobarometer survey responses, two hypotheses are tested. The first hypothesis, grounded in theories of redistribution and compensation, proposes that increases in electricity prices will drive individuals toward left-wing policies. The second hypothesis suggests that these price increases will affect welfare state regimes differently, with Nordic countries experiencing a stronger shift to the left, while Continental and Mediterranean countries may exhibit a weaker leftward movement or even a tilt to the right.
The analysis reveals mixed support for both main hypotheses. The first hypothesis is not supported, as the relationship loses statistical significance when country fixed effects are introduced. The second hypothesis presents unexpected results, as the Nordic countries, anticipated to be the most left-leaning, does not demonstrate the most pronounced leftward shift. Instead, the Continental countries exhibit the strongest move to the left. These findings suggest that increases in electricity prices may influence ideological preferences differently across welfare state regimes. However, further research is required to provide stronger evidence and draw definitive conclusions.
Place, publisher, year, edition, pages
2025. , p. 43
Keywords [en]
Electricity prices, Left-right spectrum, Political ideology, Welfare state regimes
National Category
Economics Statistics in Social Sciences
Identifiers
URN: urn:nbn:se:uu:diva-553239OAI: oai:DiVA.org:uu-553239DiVA, id: diva2:1947202
Subject / course
Political Science
Educational program
Freestanding course
Supervisors
Examiners
2025-03-252025-03-252025-03-25Bibliographically approved