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Did the policy response to the energy crisis cause crime? Evidence from England

Author

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  • Fetzer, Thiemo

    (University of Warwick, CAGE, NIESR and CEPR)

Abstract

The invasion of Ukraine has led to an unprecedented increase in energy prices in much of Western Europe with policy makers actively intervening in energy markets to cushion the shock. The UK’s policy response stands out: the energy price guarantee (EPG) was entirely untargeted and is, in real terms, much less generous to those living in properties with low energy efficiency. Using granular data and following a documented research approach this paper documents that areas more exposed to the energy price shock saw a notable increase in burglaries and anti-social behaviour: the energy price shock is responsible for a 6 to 10 percent increase in burglaries and a 9 to 24 percent increase in police reported anti-social behaviour between October 2022 to March 2023 inclusive. A quantification of policy alternatives suggests that a more targeted energy support package and/or a more energy efficient housing stock could have resulted in a drastically less pronounced uptick in crime.

Suggested Citation

  • Fetzer, Thiemo, 2023. "Did the policy response to the energy crisis cause crime? Evidence from England," CAGE Online Working Paper Series 662, Competitive Advantage in the Global Economy (CAGE).
  • Handle: RePEc:cge:wacage:662
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    File URL: https://warwick.ac.uk/fac/soc/economics/research/centres/cage/manage/publications/wp662.2023.pdf
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    References listed on IDEAS

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    1. Mirko Draca & Stephen Machin & Robert Witt, 2011. "Panic on the Streets of London: Police, Crime, and the July 2005 Terror Attacks," American Economic Review, American Economic Association, vol. 101(5), pages 2157-2181, August.
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    4. Fetzer, Thiemo & Gazze, Ludovica & Bishop, Meena, 2022. "How large is the energy savings potential in the UK?," The Warwick Economics Research Paper Series (TWERPS) 1437, University of Warwick, Department of Economics.
    5. Tom Kirchmaier & Stephen Machin & Matteo Sandi & Robert Witt, 2020. "Prices, Policing and Policy: The Dynamics of Crime Booms and Busts," Journal of the European Economic Association, European Economic Association, vol. 18(2), pages 1040-1077.
    6. Manuel Funke & Moritz Schularick & Christoph Trebesch, 2023. "Populist Leaders and the Economy," American Economic Review, American Economic Association, vol. 113(12), pages 3249-3288, December.
    7. Thiemo Fetzer, 2019. "Did Austerity Cause Brexit?," American Economic Review, American Economic Association, vol. 109(11), pages 3849-3886, November.
    8. Mirko Draca & Theodore Koutmeridis & Stephen Machin, 2019. "The Changing Returns to Crime: Do Criminals Respond to Prices?," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(3), pages 1228-1257.
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    10. Timothy Besley & Thiemo Fetzer & Hannes Mueller, 2015. "The Welfare Cost Of Lawlessness: Evidence From Somali Piracy," Journal of the European Economic Association, European Economic Association, vol. 13(2), pages 203-239, April.
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    Cited by:

    1. Fetzer, Thiemo & Palmou, Christina & Schneebacher, Jakob, 2024. "How do firms cope with economic shocks in real time?," CAGE Online Working Paper Series 722, Competitive Advantage in the Global Economy (CAGE).
    2. Thiemo Fetzer & Christina Palmou & Jakob Schneebacher, 2024. "How Do Firms Cope with Economic Shocks in Real Time?," ECONtribute Discussion Papers Series 337, University of Bonn and University of Cologne, Germany.
    3. Thiemo Fetzer & Christina Palmou & Jakob Schneebacher, 2024. "How Do Firms Cope with Economic Shocks in Real Time?," CESifo Working Paper Series 11367, CESifo.
    4. Ajayi, Victor & Andrew Burlinson, Andrew & Giulietti, Monica & Waterson, Michael, 2024. "The impact of the energy price crisis on GB consumers : a difference-in-difference experiment," The Warwick Economics Research Paper Series (TWERPS) 1523, University of Warwick, Department of Economics.
    5. Fetzer, Thiemo & Palmou, Christina & Schneebacher, Jakob, 2024. "How do firms cope with economic shocks in real time?," The Warwick Economics Research Paper Series (TWERPS) 1517, University of Warwick, Department of Economics.

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    More about this item

    Keywords

    crime; welfare; instability; climate crisis; cost-of-living JEL Classification: Q40; Q48; K42;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

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