Paper short abstract:

Utilizing a mixed-method approach, our objective is to evaluate the public acceptance of fuel subsidy elimination in Colombia within the context of the nation's social contract. Through interviews, we examine alternative reform designs and gauge public attitudes using a discrete choice experiment.

Paper long abstract:

The elimination of fossil fuel subsidies presents a practical strategy for global south countries to bolster climate mitigation endeavours. In our research paper, we delve into the crucial role of public attitude toward the subsidy removal in Colombia. Since 2022, the Colombian government has gradually elevated gasoline prices to align with global market rates, aligning with its aspiration to become a carbon neutral society. A parallel initiative for diesel prices is slated for implementation in this year.

While fuel subsidies historically aimed to support vulnerable households, their primary beneficiaries are high-income households that consume greater amounts of fossil energy. The elimination of these subsidies raises concerns about the government's fulfilment of its social contract, for instance if adequate replacements for poor and vulnerable households are lacking. Other instances, such as those in Ecuador, France, Nigeria, and more recently Germany, illustrate how the elimination of subsidies incite widespread protests with broad societal support, highlighting their role in the countries' social contract.

Our research adopts a mixed-method approach to assess the public acceptability of the elimination process and its implications for Colombia's social contract. We conduct interviews with stakeholders involved in or affected by the process to gather diverse perspectives on the impact of subsidy removal on the social contract. Additionally, we explore alternative reform designs that could enhance public acceptability. Using insights from these interviews, we design a discrete choice experiment to test various reform options, aiming to identify alternatives that effectively improve public attitudes toward the policy.