Unpacking the Distributional Implications of the Energy Crisis: Lessons from the Iberian Electricity Market

Natalia Fabra, Clément Leblanc and Mateus Souza

No 12093, CESifo Working Paper Series from CESifo

Abstract: The 2021-2023 European energy crisis, triggered by the war in Ukraine, led to broad policy interventions in energy markets. In contrast to the retail-side measures and public transfers implemented elsewhere, Spain and Portugal targeted the wholesale electricity market through the so-called Iberian solution. We quantify the distributional implications of the crisis and this market intervention on Spanish electricity firms and across consumer groups. We find that the crisis shifted substantial wealth from consumers to generators, with regressive impacts among consumers. Conversely, the policy’s relief was progressive, delivering larger gains to lower-income groups.

Keywords: energy crisis; electricity markets; distributional implications; machine learning (search for similar items in EconPapers)
JEL-codes: L94 (search for similar items in EconPapers)
Date: 2025
New Economics Papers: this item is included in nep-eur
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_12093

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