Subsidising the Gas Price as an Alternative to Skimming Off Excess Profits
Abstract In order to stabilise electricity prices, the targeted subsidisation of the gas necessary for electricity generation is proposed as an alternative to the skimming of “excess profits”. Electricity prices, which have risen sharply, can be lowered directly, leading to an unmitigated slowdown i...
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| Main Authors: | , |
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| Format: | Article |
| Language: | deu |
| Published: |
Sciendo
2022-11-01
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| Series: | Wirtschaftsdienst |
| Online Access: | https://doi.org/10.1007/s10273-022-3308-z |
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| Summary: | Abstract In order to stabilise electricity prices, the targeted subsidisation of the gas necessary for electricity generation is proposed as an alternative to the skimming of “excess profits”. Electricity prices, which have risen sharply, can be lowered directly, leading to an unmitigated slowdown in the rate of inflation. Given the small number of gas generators and the small amount of gas-generated electricity, this alternative appears to be administratively easier to implement (lower transaction costs) and economically less costly. Furthermore, the proposal requires weaker market intervention, thus less controversial distribution, and minimises the risks of misallocation. |
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| ISSN: | 1613-978X |