nep-cdm New Economics Papers
on Collective Decision-Making
Issue of 2026–06–08
six papers chosen by
Stan C. Weeber, McNeese State University


  1. The Green Shock: Carbon Pricing, Local Decline, and the Rise of the Populist Right in Europe By Ege Asutay
  2. Renaming the Past: Identity, Memory, and Electoral Backlash in Spain By Arregui Alegria, Iker
  3. Voter Switching and Policy Preferences: Evidence from Japan's 2025-2026 elections By Eiji YAMAMURA; Yasuyuki TODO
  4. From People’s War to People’s Rule: Rebel Governance and the Foundations of Inclusive Democracy By Bhishma Bhusha; Soledad Artiz Pillaman; Michael J. Callen; Deepak Singharia; Rohini Pande; Apurva Subedi
  5. Foreign Policy Co-optation: Managing Right-Wing Challengers Through Migration By Rojas Venzor, Jesús
  6. Democratic backsliding in times of crisis By Artyom Jelnov; Maxim Senkov

  1. By: Ege Asutay (Friedrich-Schiller-Universität Jena)
    Abstract: Does carbon pricing fuel the populist radical right? This paper exploits the Phase 3 reduction in free emission allowances beginning in 2013 in the EU Emissions Trading System as a quasi-natural experiment in a difference-in-differences model for 889 NUTS-3 regions in 23 European countries. Regions more exposed to the shock saw higher populist radical-right (PRR) shares, concentrated in European Parliament (EP) elections, pointing to expressive voting that channels EU-policy grievances toward the EU ballot box. The shock reaches voters through broader regional stagnation rather than deindustrialisation, as services employment falls, GDP per capita declines, and population shrinks while manufacturing employment remains unchanged. A sectoral decomposition links the EP concentration to regions with greater power-sector exposure, consistent with allowance-cost pass-through to household electricity bills. Replacing PRR with populist radical-left or Green vote shares flips the coefficient to negative, suggesting a right-wing rather than generic protest response. Instrumental variable estimates based on the manufacturing free-allocation component support the finding, which survives controls for Eurozone-crisis exposure and migration patterns. The paper contributes to the political economy of climate policy by showing that carbon pricing can generate geographically concentrated right-wing backlash and EU-directed protest voting.
    Keywords: EU Emissions Trading System, carbon pricing, populist radical right, climate policy backlash, regional decline, expressive voting
    JEL: D72 H23 Q52 Q58 R11
    Date: 2026–05–20
    URL: https://d.repec.org/n?u=RePEc:jrp:jrpwrp:2026-006
  2. By: Arregui Alegria, Iker (Department of Economics, Lund University)
    Abstract: Public spaces are increasingly becoming battlegrounds over collective identity, as societies revisit which figures deserve commemoration. The removal of statues and street names has become a powerful symbolic act, as for those attached to these legacies, such changes may be seen as denying their group identity. This paper examines the political consequences of such symbolic changes in the context of Spain, focusing on the recent renaming of streets honoring figures from the dictatorship. Using three complementary empirical strategies and drawing on both observational and survey evidence, I find that removing Francoist streets leads to a significant increase in support for far right parties in the affected areas, particularly when the names held high salience. I further implement a novel individual level survey and show that this response is driven by identity-based concerns rather than practical objections, shedding light on the political consequences of contested memory in democratic societies.
    Keywords: Voting; Identity; Spain; Renaming; Far-Right
    JEL: D72 N44 Z13
    Date: 2026–05–28
    URL: https://d.repec.org/n?u=RePEc:hhs:lunewp:2026_006
  3. By: Eiji YAMAMURA; Yasuyuki TODO
    Abstract: This study examines vote switching between Japan’s July 2025 House of Councillors and February 2026 House of Representatives elections. The Liberal Democratic Party (LDP) suffered a major defeat in 2025, then achieved a landslide victory in 2026 under Prime Minister Sanae Takaichi, who adopted a moderate but firmly immigration-restrictive platform. Based on a survey that collected 19, 945 responses, we analyzed a sub-sample of 14, 431 valid respondents using multinomial logit and Heckman selection probit models to examine party choice and vote switching. Major findings are as follows: (1) opposition to Trump-style tariffs is universal across parties, while support for immigration restriction divides voters sharply. (2) voters who switched to the LDP distrusted unverified foreigners but accepted workplace-integrated ones. (3) risk-averse voters who had supported right-wing opposition parties were especially likely to switch to the LDP. However, it should be noted that the estimation results may be biased, as the study does not account for views on topics such as the Constitution or nuclear power.
    Date: 2026–05
    URL: https://d.repec.org/n?u=RePEc:eti:dpaper:26044
  4. By: Bhishma Bhusha; Soledad Artiz Pillaman; Michael J. Callen; Deepak Singharia; Rohini Pande; Apurva Subedi
    Abstract: How does wartime rebel governance shape post-conflict institutions? We study this in Nepal, where the Maoist People's War (1996–2006) dismantled a 240-year caste-based monarchy and ended with Maoists entering democratic politics. During the conflict, Maoists established sub-national "People’s Governments" that administered justice, collected taxes, and delivered local services. Using a spatial regression-discontinuity design, we show that exposure to People's Governments increased political knowledge and participation especially among historically marginalized indigenous groups (Janajatis). Exposure also reshaped party institutions and inter-party competition: candidate-selection committees in more exposed areas have 26 percent more Janajati members who, drawing on novel implicit-attitude data, exhibit less pro-upper caste bias. Non-Maoist parties' Janajati nomination rates nearly double in fully exposed areas, consistent with competition for newly mobilized voters. Nearly two decades on, local governments in exposed areas score 0.2–0.3 standard deviations higher on state capacity indices and receive 13% more in conditional federal grants. These findings show that when rebel groups enter competitive democratic politics, wartime governance institutions can — through citizen mobilization, party gatekeeping, and cross-party competition — enable a more inclusive and capable post-war state.
    Keywords: rebel governance, post-conflict institutions, political selection, state capacity, citizen mobilization, Nepal, Janajatis, spatial regression-discontinuity, implicit association test, cross-party competition
    JEL: D72 O17 H11 D73 O12 Z13
    Date: 2026
    URL: https://d.repec.org/n?u=RePEc:ces:ceswps:_12697
  5. By: Rojas Venzor, Jesús
    Abstract: The electoral rise of right-wing populism has reshaped domestic political competition across Western democracies. Democratic governments have simultaneously developed bilateral arrangements to control migration, often involving authoritarian partners with questionable legal and human rights practices. In this paper, I present a novel dataset on the emergence of these agreements across five continents and over the last thirty years. I then develop a theory of foreign policy co-optation that explains when and why governments appropriate flexible foreign policy instruments central to the narrative of the opposition to reduce their electoral threat. I show that bilateral security Cooperation Arrangements on Migration (CAMs) are most likely to emerge when incumbent governments are challenged by right-wing populist parties, especially from left-of-center governments. The findings suggest that right-wing populist pressure paradoxically enables executives to manage electoral opposition through foreign policy, highlighting the need to revisit assumptions about the domestic sources of international cooperation and migration policy.
    Keywords: Social and Behavioral Sciences, Migration Governance, Populism, Border Security, Bilateral Security Agreements, Foreign Policy Co-optation
    Date: 2026–05–21
    URL: https://d.repec.org/n?u=RePEc:cdl:globco:qt9vz7h2xz
  6. By: Artyom Jelnov (Ariel University); Maxim Senkov (Department of Actuarial, Financial and Economic Mathematics. Universitat de Barcelona and BEAT)
    Abstract: In a political-agency model, an incumbent can initiate a restrictive policy in response to a crisis state of the world. Both the opposition and the citizen value the incumbent's policy matching the state; however, they are uncertain about the incumbent's true motives. If the incumbent is of the dictatorial type, a restrictive policy that is not protested by both the opposition and the citizen leads to the start of authoritarian rule. We show that when the incumbent is relatively unlikely to be dictatorial, the presence of radical opposition, protesting the restrictive policy regardless circumstances, can reduce voter welfare: it eliminates the efficient state-matching equilibrium, since the opposition never fully reveals dictatorial incumbents. Conversely, when the incumbent is relatively likely to be dictatorial, a high probability of radical opposition can increase voter welfare by deterring the dictatorial type from implementing the restrictive policy.
    Keywords: democratic backsliding, autocratization, emergency powers, populist radical parties
    JEL: D72 D82 D83
    Date: 2026
    URL: https://d.repec.org/n?u=RePEc:ewp:wpaper:495web

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