What drives local communities to engage in climate change mitigation activities? Examining the rural-urban divide

The National Climate Initiative (NKI) in Germany provides a strong incentive for local governments to apply for funding to engage in climate protection activities. Yet, the latest evaluation of the NKI confirms that there is a great disparity in the distribution of funding across regions. Taking this regional fragmentation as a starting point, we ask the following: How can we explain disparity in the amount of funding across counties and cities? We draw on climate policy literature pointing to the role of socioeconomic and political determinants and the settlement structure to answer this question. We study all 400 cities and counties to test hypotheses concerning disparity in the likelihood and amount of climate funding, using data from the German Ministry for the Environment and further regional statistics. Running different multilevel regression models, we show that local climate funding is more likely in cities and more urbanized counties than in rural counties with less population and oftentimes also with less young and educated people. We argue that despite the increasing number of local governments getting active in climate protection in Germany, there is important unused potential for climate change mitigation in rural counties. Therefore, we conclude by proposing a new research agenda focusing on climate change mitigation in rural areas.