Subsidising the Gas Price as an Alternative to Skimming Off Excess Profits
Abstract In order to stabilise electricity prices, the targeted subsidisation of the gas necessary for electricity generation is proposed as an alternative to the skimming of “excess profits”. Electricity prices, which have risen sharply, can be lowered directly, leading to an unmitigated slowdown i...
| Main Authors: | , |
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| Format: | Article |
| Language: | deu |
| Published: |
Springer
2022-11-01
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| Series: | Wirtschaftsdienst |
| Online Access: | https://doi.org/10.1007/s10273-022-3308-z |
| _version_ | 1811315211828723712 |
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| author | Eckhard Höffner Hermann Schubert |
| author_facet | Eckhard Höffner Hermann Schubert |
| author_sort | Eckhard Höffner |
| collection | DOAJ |
| description | Abstract In order to stabilise electricity prices, the targeted subsidisation of the gas necessary for electricity generation is proposed as an alternative to the skimming of “excess profits”. Electricity prices, which have risen sharply, can be lowered directly, leading to an unmitigated slowdown in the rate of inflation. Given the small number of gas generators and the small amount of gas-generated electricity, this alternative appears to be administratively easier to implement (lower transaction costs) and economically less costly. Furthermore, the proposal requires weaker market intervention, thus less controversial distribution, and minimises the risks of misallocation. |
| first_indexed | 2024-04-13T11:26:17Z |
| format | Article |
| id | doaj.art-5573effae4904b8c90643ef617bf3d48 |
| institution | Directory Open Access Journal |
| issn | 1613-978X |
| language | deu |
| last_indexed | 2024-04-13T11:26:17Z |
| publishDate | 2022-11-01 |
| publisher | Springer |
| record_format | Article |
| series | Wirtschaftsdienst |
| spelling | doaj.art-5573effae4904b8c90643ef617bf3d482022-12-22T02:48:41ZdeuSpringerWirtschaftsdienst1613-978X2022-11-011021185886410.1007/s10273-022-3308-zSubsidising the Gas Price as an Alternative to Skimming Off Excess ProfitsEckhard HöffnerHermann Schubert0International School of ManagementAbstract In order to stabilise electricity prices, the targeted subsidisation of the gas necessary for electricity generation is proposed as an alternative to the skimming of “excess profits”. Electricity prices, which have risen sharply, can be lowered directly, leading to an unmitigated slowdown in the rate of inflation. Given the small number of gas generators and the small amount of gas-generated electricity, this alternative appears to be administratively easier to implement (lower transaction costs) and economically less costly. Furthermore, the proposal requires weaker market intervention, thus less controversial distribution, and minimises the risks of misallocation.https://doi.org/10.1007/s10273-022-3308-z |
| spellingShingle | Eckhard Höffner Hermann Schubert Subsidising the Gas Price as an Alternative to Skimming Off Excess Profits Wirtschaftsdienst |
| title | Subsidising the Gas Price as an Alternative to Skimming Off Excess Profits |
| title_full | Subsidising the Gas Price as an Alternative to Skimming Off Excess Profits |
| title_fullStr | Subsidising the Gas Price as an Alternative to Skimming Off Excess Profits |
| title_full_unstemmed | Subsidising the Gas Price as an Alternative to Skimming Off Excess Profits |
| title_short | Subsidising the Gas Price as an Alternative to Skimming Off Excess Profits |
| title_sort | subsidising the gas price as an alternative to skimming off excess profits |
| url | https://doi.org/10.1007/s10273-022-3308-z |
| work_keys_str_mv | AT eckhardhoffner subsidisingthegaspriceasanalternativetoskimmingoffexcessprofits AT hermannschubert subsidisingthegaspriceasanalternativetoskimmingoffexcessprofits |