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Energy price shocks in Europe and its impacts on vulnerable households: A demand system approach

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  • Varal, Shiwani
  • Reaños, Miguel Angel Tovar

Abstract

This paper examines how European households, particularly low-income groups, adjusted to the surge in energy prices during the 2022–2023 energy crisis and the extent to which policy interventions mitigated the associated welfare losses. We estimate a household demand system using EU microdata and energy prices adjusted for government subsidies.

Suggested Citation

  • Varal, Shiwani & Reaños, Miguel Angel Tovar, 2026. "Energy price shocks in Europe and its impacts on vulnerable households: A demand system approach," Energy Economics, Elsevier, vol. 160(C).
    • Handle: RePEc:eee:eneeco:v:160:y:2026:i:c:s0140988326003087
    DOI: 10.1016/j.eneco.2026.109429
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    Keywords

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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