High Time for a Gas Price Cap: An Important Instrument in the Fight Against Energy Price Burdens
Abstract The explosive increase of the price of natural gas is a key driver of inflation in Germany. At the same time, physical gas shortages in the fall or winter are a plausible scenario. A policy response is urgently needed that protects households from skyrocketing heating costs while at the sam...
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| Main Authors: | , |
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| Format: | Article |
| Language: | deu |
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Sciendo
2022-09-01
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| Series: | Wirtschaftsdienst |
| Online Access: | https://doi.org/10.1007/s10273-022-3254-9 |
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| _version_ | 1832573806477049856 |
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| author | Sebastian Dullien Isabella M. Weber |
| author_facet | Sebastian Dullien Isabella M. Weber |
| author_sort | Sebastian Dullien |
| collection | DOAJ |
| description | Abstract The explosive increase of the price of natural gas is a key driver of inflation in Germany. At the same time, physical gas shortages in the fall or winter are a plausible scenario. A policy response is urgently needed that protects households from skyrocketing heating costs while at the same time maintaining price incentives to save gas. We have proposed a gas price cap for households’ basic consumption and market prices for all demand above that guaranteed base. Our proposal has been widely discussed by economists and policy makers. In this article, we respond to some criticisms, provide details on the feasibility of our proposal, and urge for swift political action. |
| format | Article |
| id | doaj-art-07d7f04002584c1e801a708d3935e880 |
| institution | Kabale University |
| issn | 1613-978X |
| language | deu |
| publishDate | 2022-09-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Wirtschaftsdienst |
| spelling | doaj-art-07d7f04002584c1e801a708d3935e8802025-02-02T02:43:39ZdeuSciendoWirtschaftsdienst1613-978X2022-09-01102859559810.1007/s10273-022-3254-9High Time for a Gas Price Cap: An Important Instrument in the Fight Against Energy Price BurdensSebastian Dullien0Isabella M. Weber1in der Hans-Böckler-Stiftung, Inst. f. Makroökonomie u. Konjunkturf. (IMK)Political Economy Research InstituteAbstract The explosive increase of the price of natural gas is a key driver of inflation in Germany. At the same time, physical gas shortages in the fall or winter are a plausible scenario. A policy response is urgently needed that protects households from skyrocketing heating costs while at the same time maintaining price incentives to save gas. We have proposed a gas price cap for households’ basic consumption and market prices for all demand above that guaranteed base. Our proposal has been widely discussed by economists and policy makers. In this article, we respond to some criticisms, provide details on the feasibility of our proposal, and urge for swift political action.https://doi.org/10.1007/s10273-022-3254-9 |
| spellingShingle | Sebastian Dullien Isabella M. Weber High Time for a Gas Price Cap: An Important Instrument in the Fight Against Energy Price Burdens Wirtschaftsdienst |
| title | High Time for a Gas Price Cap: An Important Instrument in the Fight Against Energy Price Burdens |
| title_full | High Time for a Gas Price Cap: An Important Instrument in the Fight Against Energy Price Burdens |
| title_fullStr | High Time for a Gas Price Cap: An Important Instrument in the Fight Against Energy Price Burdens |
| title_full_unstemmed | High Time for a Gas Price Cap: An Important Instrument in the Fight Against Energy Price Burdens |
| title_short | High Time for a Gas Price Cap: An Important Instrument in the Fight Against Energy Price Burdens |
| title_sort | high time for a gas price cap an important instrument in the fight against energy price burdens |
| url | https://doi.org/10.1007/s10273-022-3254-9 |
| work_keys_str_mv | AT sebastiandullien hightimeforagaspricecapanimportantinstrumentinthefightagainstenergypriceburdens AT isabellamweber hightimeforagaspricecapanimportantinstrumentinthefightagainstenergypriceburdens |