Thread by @bramcla

🇪🇺 #energycrisis response measures: here's them all together, plus assessment, brought to you by the @RegAssistProj team.

💡SAVE gas, tax corporate windfall profits, provide direct financial support. Don't cap.

1/n

Yesterday saw the dramatic #Nordstream sabotage. Despite this, #fossilgas prices remain relatively stable.
They dropped significantly over the past weeks, but remain very high.
#TTF

2/n

Governments feeling the pressure seek for solutions, some good and some bad.
@eaGreenEU
3/n
euractiv.com/section/energy…

Hence the need for level-headed assessment.

We pulled them all together, and they make for an impressive list. Important: only short-term measures.

4/n

Assessing against (1) feasibility, (2) consumer impacts, (3) European cohesion and (4) #climate coherence, brings out clearly the diverging value of proposals

5/n

Interventions to reduce cost of procuring gas (group purchase, smart entry tariff or price cap on pipeline gas) have merit. But it is a challenge to implement them.
6/n

Demand-side reduction and flexibility is essential.
- Provide targeted financial support, not general subsidies
- Bolster social security systems, complement by financial support for vulnerable consumers
- Inclining block tariffs/general rebates = interesting, but untargeted
7/n

Windfall taxes hold most promise as source of revenue for welfare redistribution.

The #DGENER infra-marginal rent capture proposal may offer another avenue. But we're not sure it will work.

8/n

Text and all materials here: linkedin.com/pulse/energy-c…

As always, very interested in your views and comments.

9/9

Assessment by the colleagues @AgoraEW

Assessment by @Bruegel_org of price caps and other market interventions in response to #EnergyCrisis