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Hungarian Energy Prices in an OECD Comparison

Author

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  • Zoltán Bartha

    (University of Miskolc)

Abstract

The goal of the study is to assess the effect of the utility cost reductions announced by the Hungarian government in 2012 on Hungarian energy prices. The effects are discussed in an OECD comparison. It is concluded that the government price control has resulted in a 15% steeper price reduction occurring 5-7 quarters earlier, compared to other OECD countries. The price reductions saved around 202 billion HUF for Hungarian households in 2014, which was around 0.63% of the GDP. If prices are compared to the monthly average wages however, household energy prices are still high in Hungary. One of the costs of the reduction in household energy prices was an increase in energy prices for industry: the industry/household price ratio is highest among OECD countries in the case of natural gas, and third highest for electricity.

Suggested Citation

  • Zoltán Bartha, 2016. "Hungarian Energy Prices in an OECD Comparison," Theory Methodology Practice (TMP), Faculty of Economics, University of Miskolc, vol. 12(01), pages 9-18.
    • Handle: RePEc:mic:tmpjrn:v:12:y:2016:i:01:p:9-18
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    File URL: http://tmp.gtk.uni-miskolc.hu/volumes/2016/01/TMP_2016_01_02.pdf
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    References listed on IDEAS

    as
    1. Barnes, Ryan & Bosworth, Ryan, 2015. "LNG is linking regional natural gas markets: Evidence from the gravity model," Energy Economics, Elsevier, vol. 47(C), pages 11-17.
    2. Duangnate, Kannika & Mjelde, James W. & Bessler, David A., 2015. "Price Dynamics under Structural Changes with Unknown Break Points among North America Natural Gas Spot Markets," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205661, Agricultural and Applied Economics Association.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    electricity; Hungary; natural gas; price control; utility cost reduction;
    All these keywords.

    JEL classification:

    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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