Why "Energy Price Brakes" Encourage Moral Hazard, Raise Energy Prices, and Reinforce Energy Savings.

To help households and firms with exploding energy costs in the aftermath of the Ukraine war, a new policy called the "energy price brake" was implemented. A unique feature of this relief measure is that it provides a transfer that increases in the consumer's contractual per‐unit price of energy. In...

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Bibliographic Details

Published in:	RAND Journal of Economics (Wiley-Blackwell) Vol. 56; no. 2; pp. 129 - 145
Main Authors:	Dertwinkel‐Kalt, Markus, Wey, Christian
Format:	Article
Published:	Wiley-Blackwell Summer2025
Subjects:	Russian invasion of Ukraine, 2022- Energy industries Moral hazard Energy shortages Market design & structure (Economics)
Online Access:	View this record in EBSCOhost