Energy price increases and mitigation policies: Redistributive effects on Italian households

Andrea Bonfatti and Elena Giarda

Journal of Policy Modeling, 2025, vol. 47, issue 2, 251-275

Abstract: Between July 2021 and March 2023, the Italian government took action to support households’ and individuals’ incomes to help them cope with the exceptional energy and food prices surge, by means of both tariff and income-based fiscal policy measures. In this paper, we perform a microsimulation exercise to quantify the effects of the price increases and of the policy interventions on household expenditure and income. Our results indicate that the regressive impact of the price rises was mitigated by the fiscal measures, which also succeeded in reducing inequality, at risk of poverty and energy poverty. Furthermore, we observe the relevant role of income-based measures in the South of the country.

Keywords: Microsimulation; Redistribution; Energy prices mitigation policies; Energy consumption; Energy poverty (search for similar items in EconPapers)
JEL-codes: D10 D30 H31 I32 Q48 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:47:y:2025:i:2:p:251-275

DOI: 10.1016/j.jpolmod.2024.06.006

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