The Effects of the Iberian Exception Mechanism on Wholesale Electricity Prices and Consumer Inflation: A Synthetic-controls Approach
Miguel Haro Ruiz, Christoph Schult, Christoph Wunder
IWH Discussion Papers,
No. 5,
2024
Abstract
This study employs synthetic control methods to estimate the effect of the Iberian exception mechanism on wholesale electricity prices and consumer inflation, for both Spain and Portugal. We find that the intervention led to an average reduction of approximately 40% in the spot price of electricity between July 2022 and June 2023 in both Spain and Portugal. Regarding overall inflation, we observe notable differences between the two countries. In Spain, the intervention has an immediate effect, and results in an average decrease of 3.5 percentage points over the twelve months under consideration. In Portugal, however, the impact is small and generally close to zero. Different electricity market structures in each country are a plausible explanation.
Read article
IWH Bankruptcy Research
IWH Bankruptcy Research The Bankruptcy Research Unit of the Halle Institute for...
See page
Department Profiles
Research Profiles of the IWH Departments All doctoral students are allocated to one...
See page
Department Profiles
Research Profiles of the IWH Departments All doctoral students are allocated to one...
See page
EVA-KULT
EVA-KULT Establishing Evidence-based Evaluation Methods for Subsidy Programmes in...
See page
IWH European Real Estate Index
IWH European Real Estate Index The IWH European Real Estate Database is a new data...
See page
Transformation tables for administrative borders in Germany
Transformation tables for administrative borders in Germany The state has the ability...
See page
IWH Treuhand Database
IWH Treuhand Privatisation Micro Database The IWH Treuhand Micro Database is a new...
See page
IWH FDI Micro Database
IWH FDI Micro Database The IWH FDI Micro Database (FDI = Foreign Direct...
See page
Data
Transformation tables for administrative borders in Germany – data In order to...
See page