Do local fuel prices affect remote working behaviors and carbon emission savings?: evidence from German panel data

Given the importance of the transport sector for greenhouse gas emissions, both behavioral change will be needed to mitigate climate change in addition to technological innovation. We focus on the case of remote working as a less carbon-intensive substitute to commuting and analyze whether employees...

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Bibliographic Details
Main Authors: Schmiedeberg, Claudia (Author) , Schober, Dominik (Author)
Format: Book/Monograph Working Paper
Language:English
Published: Frankfurt am Main Deutsche Bundesbank [2026]
Series:Discussion paper / Deutsche Bundesbank no 2026, 03
In: Discussion paper (no 2026, 03)

DOI:10.71734/DP-2026-3
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Online Access:Verlag, kostenfrei: https://www.bundesbank.de/resource/blob/988950/10cefeb87fb875fd8bd7fada3369fb60/472B63F073F071307366337C94F8C870/2026-02-05-dkp-03-data.pdf
Resolving-System, kostenfrei: https://doi.org/10.71734/DP-2026-3
Resolving-System, kostenfrei: https://hdl.handle.net/10419/337463
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Author Notes:Claudia Schmiedeberg, Dominik Schober
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Summary:Given the importance of the transport sector for greenhouse gas emissions, both behavioral change will be needed to mitigate climate change in addition to technological innovation. We focus on the case of remote working as a less carbon-intensive substitute to commuting and analyze whether employees react to price incentives and work more from home in times of higher local fuel prices. Applying an instrumental variables approach based on panel data from Germany, we find moderate fuel price effects on remote working frequency, which are restricted to occupations with high skill- level and regions with limited alternatives to car commuting. We use these results to predict changes in remote working frequency as a consequence to increasing carbon prices as discussed for climate policy. Results indicate that even with ambitious carbon pricing, individual remote working frequency will increase modestly, causing only limited reductions in German national aggregate fuel and carbon emissions.
Physical Description:Online Resource
ISBN:9783988480606
DOI:10.71734/DP-2026-3