How Should Governments Respond to Energy Crises?

Christian Bayer
Profile Picture of - Christian Bayer

Christian Bayer

Abstract information

When faced with an energy crisis that sees prices substantially increase, governments have a number of options. In this video, CHRISTIAN BAYER analyzes the economic impacts of German and Italian responses to the aftermath of Russia’s 2022 invasion of Ukraine. Bayer develops a complex model that compares Italian subsidies to German monetary transfers. His findings show that subsidies have a more negative economic impact than monetary transfers while the latter help lower income households the most. This ongoing research project will be of high interest to policymakers and economists in the context of the European Carbon Trading Scheme, set to be introduced in 2027.

DOI:

https://doi.org/10.21036/LTPUB101176

Researcher

Christian Bayer is a Professor of Economics at the University of Bonn. Holding research fellowships at CESifo, CEPR and the IZA, Bayer is also a member of the ECONtribute cluster of excellence. Having completed his doctoral research at the University of Dortmund in 2004, Bayer’s main research interests include dynamic macroeconomics, heterogeneity and empirical macroeconomics. Bayer’s work is regularly featured in the media (Deutschlandfunk, Die Zeit) and on his podcast WRINT: Wirtschaftskunde.

Institution information

University of Bonn (Rheinische Friedrich-Wilhelms-Universität Bonn)

The University of Bonn is one of Germany’s most prestigious and research-intensive institutions, consistently ranked among the top universities worldwide. Founded in 1818, it is celebrated for its academic excellence, particularly in mathematics and economics, and boasts a record of producing several Nobel Laureates and Fields Medalists. Located in the former German capital, the university is integrated into the city’s historic fabric, offering a vibrant international environment and a diverse range of programs across seven faculties. As a member of the elite U15 group, it remains a global leader in innovation and higher education.
University of Bonn (Rheinische Friedrich-Wilhelms-Universität Bonn)
Cover Photo of - University of Bonn (Rheinische Friedrich-Wilhelms-Universität Bonn)

Original Publication

Hicks in HANK: Fiscal Responses to an Energy Shock

Christian Bayer,

Alexander Kriwoluzky,

Gernot J. Müller,

Fabian Seyrich

Published in

Citation

Christian Bayer, 

Latest Thinking, 

How Should Governments Respond to Energy Crises?, 

https://doi.org/10.21036/LTPUB101176, 

Credits:

© Christian Bayer 

and Latest Thinking

This work is licensed under CC-BY 4.0