Securing public support for fuel subsidy reform: Experimental and policymaker insights from Malaysia

Fossil fuel subsidies pose a significant barrier to decarbonisation goals, yet their removal is challenging due to concerns about public opposition and the potential impact on vulnerable groups. In Malaysia, where a petrol subsidy reform has been announced but not yet implemented, we use a mixed-methods approach, combining an online survey experiment (N = 1,208) and interviews with policymakers (N = 12), to identify how messaging can build support. Results show that framing the reform as a redistributive measure can increase public support by 7 percentage points from a baseline of 24%, while also decreasing opposition. A direct comparison of the treatments shows that the redistributive frame significantly outperforms the environmental frame by 6.2 percentage points. Policymakers acknowledge the challenges posed by the unpopularity of subsidy reforms, but underscore the critical role of strategic communication in addressing public concerns. Transparent, resonant narratives offer policymakers a scalable and cost-effective way to secure public buy-in in the critical post-announcement, pre-implementation phase of fuel subsidy reform. • Majority of respondents (59%) initially opposed the fuel subsidy reform. • Emphasising the redistributive benefits increases support by 7% relative to control. • Redistributive framing significantly outperforms the environmental frame by 6.2 p.p.. • Policymakers acknowledge electoral risks and public opinion when implementing reform.

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Publication Details

Journal
Energy Economics
Published
2025-11-26
DOI
https://doi.org/10.1016/j.eneco.2025.109051
Primary Topic
Energy, Environment, and Transportation Policies
Type
article
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article

Securing public support for fuel subsidy reform: Experimental and policymaker insights from Malaysia

Stefania Innocenti, Preethika Bharadwaj
Energy Economics
Energy, Environment, and Transportation Policies
article

Securing public support for fuel subsidy reform: Experimental and policymaker insights from Malaysia

Stefania Innocenti, Preethika Bharadwaj
article en

Abstract

Fossil fuel subsidies pose a significant barrier to decarbonisation goals, yet their removal is challenging due to concerns about public opposition and the potential impact on vulnerable groups. In Malaysia, where a petrol subsidy reform has been announced but not yet implemented, we use a mixed-methods approach, combining an online survey experiment (N = 1,208) and interviews with policymakers (N = 12), to identify how messaging can build support. Results show that framing the reform as a redistributive measure can increase public support by 7 percentage points from a baseline of 24%, while also decreasing opposition. A direct comparison of the treatments shows that the redistributive frame significantly outperforms the environmental frame by 6.2 percentage points. Policymakers acknowledge the challenges posed by the unpopularity of subsidy reforms, but underscore the critical role of strategic communication in addressing public concerns. Transparent, resonant narratives offer policymakers a scalable and cost-effective way to secure public buy-in in the critical post-announcement, pre-implementation phase of fuel subsidy reform. • Majority of respondents (59%) initially opposed the fuel subsidy reform. • Emphasising the redistributive benefits increases support by 7% relative to control. • Redistributive framing significantly outperforms the environmental frame by 6.2 p.p.. • Policymakers acknowledge electoral risks and public opinion when implementing reform.

Energy EconomicsVol. 153
University of Oxford (GB), ET Enterprises (United Kingdom) (GB)
Openalex Percentile: Top 74%
Energy, Environment, and Transportation Policies
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Securing public support for fuel subsidy reform: Experimental and policymaker insights from Malaysia — Stefania Innocenti, Preethika Bharadwaj · Energy Economics (2025) | TGRS Research Map | TGRS