ZEW Researcher Dr. Peter Heindl on High Electricity Prices and Social Justice

The household electricity price in Germany of 29.7 cent per kWh is among the highest in Europe, according to the latest figures released by the European Statistical Office Eurostat on May 27, 2015. Taxes and levies make up more than 50 per cent of this price. "High electricity prices weigh heavily on low-income households in particular," explains Dr. Peter Heindl, energy market expert at the Centre for European Economic Research (ZEW), with regard to further electricity price increases in Germany and Europe.

"A ZEW study conducted in collaboration with the Organisation for Economic Co-operation and Development (OECD) shows that high energy prices cause considerable distributional effects. This is also a risk associated with the energy transition in Germany. To implement a sustainable energy and climate policy in Germany, we therefore have to put greater focus on cost efficiency and social balance. Only if the costs are distributed fairly, climate protection and access to prosperity for everyone can be achieved."

Publications by Peter Heindl on the distributional effects of energy and climate policies

Heindl, Peter, Rudolf Schüßler and Andreas Löschel (2014), "Ist die Energiewende sozial gerecht?" ("Is the Energy Transition Socially Balanced"), Wirtschaftsdienst 94 (7), 508-514. (in German)

Heindl, Peter and Andreas Löschel (2015), Social Implications of Green Growth Policies from the Perspective of Energy Sector Reform and its Impact on Households, ZEW Discussion Paper No. 15-012, Mannheim.

Contact

Dr. Peter Heindl, Phone +49/621/1235-206, E-mail heindl@zew.de