📄 Full article here: www.ifo.de/DocDL/cesifo...

🚩 By unpacking **who gained, who lost, and why**, this work highlights how emergency interventions can be designed to be fairer and more effective - not just in Iberia, but across volatile energy markets worldwide.

5️⃣ The Power of Energy Saving
Energy-saving measures mattered as much as price adjustments in curbing demand—showing the value of pairing market interventions with ambitious efficiency targets.

4️⃣ Beyond Price Effects: exports and emissions
Lower wholesale prices boosted exports to France, raising Iberian thermal generation and emissions. This may have been partly offset by reductions in France, to the extent that Spanish electricity displaced French gas-fired generation.

3️⃣ Regressive Shock, Progressive Relief
Higher-income households paid higher bill increases in absolute terms, but lower-income households were hit harder relative to income. The Iberian intervention made the relief progressive: poorer households gained more, proportionally, from the policy.

2️⃣ Redistribution of Wealth
The energy crisis shifted large amounts of wealth from consumers to generators. On average, household annual electricity bills rose €338/year (~1% of disposable income). The Iberian price cap alone explains nearly 60% of the avoided burden.

1️⃣ Wholesale Market Shock
The gas crisis generated large windfall rents for electricity producers. While most EU governments relied on costly downstream measures, Spain and Portugal intervened upstream where the rents arose - in the wholesale market - with the *Iberian solution*.

Gracias Jorge!

Gracias Pedro por tu resumen!