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Höchste Zeit für einen Gaspreisdeckel: ein wichtiges Instrument im Kampf gegen Energiepreisbelastung
[High Time for a Gas Price Cap: An Important Instrument in the Fight Against Energy Price Burdens]

Author

Listed:
  • Sebastian Dullien

    (Inst. f. Makroökonomie u. Konjunkturf. (IMK))

  • Isabella M. Weber

    (Political Economy Research Institute)

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.

Suggested Citation

  • Sebastian Dullien & Isabella M. Weber, 2022. "Höchste Zeit für einen Gaspreisdeckel: ein wichtiges Instrument im Kampf gegen Energiepreisbelastung [High Time for a Gas Price Cap: An Important Instrument in the Fight Against Energy Price Burden," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 102(8), pages 595-598, August.
    • Handle: RePEc:spr:wirtsc:v:102:y:2022:i:8:d:10.1007_s10273-022-3254-9
    DOI: 10.1007/s10273-022-3254-9
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    References listed on IDEAS

    as
    1. Mats Kröger & Maximilian Longmuir & Karsten Neuhoff & Franziska Schütze, 2022. "The Costs of Natural Gas Dependency: Price Shocks, Inequality, and Public Policy," Discussion Papers of DIW Berlin 2010, DIW Berlin, German Institute for Economic Research.
    2. Neuhoff, K., 2022. "Defining gas price limits and gas saving targets for a large-scale gas supply interruption," Cambridge Working Papers in Economics 2253, Faculty of Economics, University of Cambridge.
    3. Sebastian Dullien & Isabella M. Weber, 2022. "Mit einem Gaspreisdeckel die Inflation bremsen [Putting the brakes on inflation with a gas price cap]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 102(3), pages 154-155, March.
    4. Karsten Neuhoff & Isabella Weber & Kacper Szulecki & Andreas Goldthau, 2022. "How to Design EU-Level Contingency Plans for Gas Shortages? Evidence from Behavioural Economics, Policy Research and Past Experience: Final Report," DIW Berlin: Politikberatung kompakt, DIW Berlin, German Institute for Economic Research, volume 127, number pbk177, January.
    5. Karsten Neuhoff, 2022. "Defining Gas Price Limits and Gas Saving Targets for a Large-scale Gas Supply Interruption: Final Report," DIW Berlin: Politikberatung kompakt, DIW Berlin, German Institute for Economic Research, volume 127, number pbk180, January.
    6. Koichiro Ito, 2014. "Do Consumers Respond to Marginal or Average Price? Evidence from Nonlinear Electricity Pricing," American Economic Review, American Economic Association, vol. 104(2), pages 537-563, February.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    D47; E31; H12; P18;
    All these keywords.

    JEL classification:

    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment

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