Remember the European Energy Crisis of 2022?. We have a new working paper studying the household-level responses to high energy prices. We use Finnish registry data and the crisis as a natural experiment to learn how households respond to electricity price shocks. /1

RT @stefanski_radek: What are the productivity costs of dispersed tax policies? New work (w/ @AhlvikLassi, @jorgenja, @tfharding, Trew) fin….

RT @rod_coliveira: 📢 Big news for inequality researchers & policy-makers!. @UNUWIDER has just released a major update to the World Income I….

RT @VSET_contact: Coming up next: on 15/May, Mohammad Akbarpour (Stanford) presents "Optimal Redistribution via Income Taxation and Market….

Had a great workshop, "Using Nordic microdata to solve environmental problems", with a series of fantastic speakers at University of Helsinki - many thanks to all who participated 🙏

Jännää nähdä, mihin suuntaan hinnat kehittyvät. ETS1-markkinalla hinnat vaihtelivat aluksi paljon, kun markkinat yrittivät ymmärtää päästöoikeuksien niukkuutta ja hinnanmuodostusta. ETS2-markkinallakin on odotettavissa heiluntaa. Hienoa aikaa ilmastopolitiikkanörteille! /3

Hinta on käytännössä sama kuin ETS1:n hinta. Se on enemmän kuin "pehmeä lattiahinta" (nimellishinta 45€/tCO2), mutta vähemmän kuin villeimmät mallinnukset jotka ennustivat jopa 200€/tCO2. /2.

Jakelijoiden päästökauppa (ETS2) alkaa v. 2027. Tänään saatiin ensimmäinen signaali markkinoilta: 73,57€/tCO2, kun joulukuun 2028 päästöoikeuksien futuureita myytiin tuolla hinnalla /1

Toimiiko päästökauppa Intiassa? Kyllä, erittäin hyvin, kertoo satunnaiskokeiluun perustuva tutkimus.

Kirjoitin @SiniNumminen kanssa energiatukien kohdentamista. Monissa verrokkimaissa (Britit, Tanska, Ranska) tuet on sidottu saajan tuloihin. Suosittelemme samaa Suomeen:.

Ympäristötaloustieteen uusia tutkimuskysymyksiä: avaruusromu ja Kesslerin syndrooma.

RT @pedrohcgs: This paper has been in the making for so long that eight children across the co-author group were born between the time we s….

RT @YanQinyq: ⬆️🙃UK carbon price just surged 6.5% on a Bloomberg news headline about UK-EU ETS linkage

RT @cepr_org: New CEPR Discussion Paper - DP19972.Household-Level Responses to the European Energy Crisis.@AhlvikLassi @helsinkiuni @UniSta….

To sum up: Energy price shocks amplify inequality. /10. More in the paper. We're happy to hear your thoughts and comments!.The CEPR working paper is found here: Ungated version is here:

Low-income households are hit through multiple channels: (i) high electricity spending as a share of income, (ii) low demand elasticity, (iii) limited ability to increase earnings. As a result they (iv) have higher default risk and (v) must reduce residual consumption further /9.

We can use these results to simulate what happens if strict climate policies electricity prices by 10c/kWh. Each bar height is the static effect—how much the bill increases for each income group. The colors reflect all the response channels. /8

These average treatment effects mask interesting heterogeneity.- Low-income: low demand elasticity, little earnings adjustment, big drop in other spending and higher default risk.- High-income: able to cut electricity use more, small drop in other spending, no rise in defaults /7

We also study anticipation: some households knew their contracts would end later in the crisis. They started cutting electricity use early—likely via energy-saving investment. When contracts ended abruptly due to retailer bankruptcy, we see no such effect /6

On average, when electricity prices double, households respond by:.- Cutting electricity use by 18%.- Increasing labor earnings by 1%.- Facing a 0.4 pp higher default risk.- Reducing other consumption by 4.5% /5

If you were a treated household and got a €500 bill, what would you do? .(a) Reduce electricity use—the standard demand response.(b) Earn more—through benefits, labor markets.(c) Default on your bill!.(d) Cut other spending or use savings—we can construct a residual term /4