🇪🇺 #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
💡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
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…
@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
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
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
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
- 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
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
As always, very interested in your views and comments.
9/9
Assessment by the colleagues @AgoraEW
https://twitter.com/AgoraEW/status/1575070471954911232?s=20&t=ubU_vdAMD8mEfU3OGsUQAQ
Assessment by @Bruegel_org of price caps and other market interventions in response to #EnergyCrisis
https://twitter.com/c_heussaff/status/1575461558733475843?t=ZRjVyB8LmEkWgDG3UabKrg&s=19
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