Natalia Fabra (@nataliafabra.bsky.social)

📢 New VoxEU / CEPR article: Winners and Losers of the Energy Crisis cepr.org/voxeu/column... I’m excited to share our latest piece, where we examine the redistributional effects of Europe’s 2021–2023 energy crisis and the policy lessons from Spain and Portugal’s “Iberian solution.” 🧵

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Winners and losers from the energy crisis: Policy lessons from the Iberian electricity market Europe’s recent energy crisis generated large windfall rents for electricity producers. Yet, most EU governments responded with costly downstream measures that left wholesale prices – and producer profits – largely untouched. This column shows that Spain and Portugal charted a different course by intervening directly in the wholesale market, decoupling electricity prices from gas. This substantially lowered consumer bills, with little impact on public funds. Crucially, the intervention provided proportionally greater relief to low-income households, highlighting how policy design can shape both efficiency and equity in times of crisis. https://cepr.org/voxeu/columns/winners-and-losers-energy-crisis-policy-lessons-iberian-electricity-market