The Fiscal and Intergenerational Burdens of Brakes and Subsidies for Energy Prices

Christian Scharrer and Johannes Huber

No 346, Discussion Paper Series from Universitaet Augsburg, Institute for Economics

Abstract: We study the effects of different financing rules for untargeted energy price brakes and subsidies on intergenerationalwelfare in a large-scale overlapping generations model. The results indicate that, in comparison to a laissez-faire solution without any government interventions, debt-financed implementations of such measures are very detrimental for young and future generations. However, the taxation of windfall profits can significantly contribute to reduce the economic burdens of these generations, whereas the positive effects on older generations are much less pronounced.

Keywords: Fiscal Policy; Price Brakes; Price Subsidies; Energy Crisis; Welfare (search for similar items in EconPapers)
JEL-codes: E30 E62 H20 H30 (search for similar items in EconPapers)
Date: 2023-08
New Economics Papers: this item is included in nep-dge and nep-ene
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https://vwl.wiwi.uni-augsburg.de/vwl/institut/paper/346.pdf (application/pdf)

Related works:
Journal Article: The fiscal and intergenerational burdens of brakes and subsidies for energy prices (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:aug:augsbe:0346

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