IDEAS home Printed from https://ideas.repec.org/p/wrk/warwec/1467.html
   My bibliography  Save this paper

Distributional and climate implications of policy responses to energy price shocks

Author

Listed:
  • Fetzer, Thiemo

    (University of Warwick)

  • Gazze, Ludovica

    (University of Warwick)

  • Bishop, Menna

    (University of Warwick)

Abstract

Which households are most affected by energy price shocks? What can we learn about the distributional implications of carbon taxes? How do interventions in energy markets affect these patterns? This paper introduces a measurement framework that leverages granular property-level data representing more than 50% of the English and Welsh housing stock. We use this ex-ante measurement framework to investigate these questions and set out an empirical evaluation framework to study the causal effects of the energy crisis more broadly. We find that the energy price shock has a more pronounced effect on relatively more affluent areas highlighting the likely progressive impact of carbon taxation. We document that commonly used untargeted interventions in energy markets significantly weaken market price signals for able-to-pay households. Alternative, more targeted policies are cheaper, easily implementable, and could better align energy saving incentives.

Suggested Citation

  • Fetzer, Thiemo & Gazze, Ludovica & Bishop, Menna, 2023. "Distributional and climate implications of policy responses to energy price shocks," The Warwick Economics Research Paper Series (TWERPS) 1467, University of Warwick, Department of Economics.
  • Handle: RePEc:wrk:warwec:1467
    as

    Download full text from publisher

    File URL: https://warwick.ac.uk/fac/soc/economics/research/workingpapers/2023/twerp_1467_-_gazze.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Thiemo Fetzer & Callum Shaw & Jacob Edenhofer, 2024. "Informational Boundaries of the State," ECONtribute Discussion Papers Series 282, University of Bonn and University of Cologne, Germany.

    More about this item

    Keywords

    Energy crisis ; Carbon taxation ; Climate change ; Energy efficiency gap JEL codes: Q48 ; C55;
    All these keywords.

    JEL classification:

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wrk:warwec:1467. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Margaret Nash (email available below). General contact details of provider: https://edirc.repec.org/data/dewaruk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.