Template-Type: ReDIF-Paper 1.0
Title: Unpacking the Distributional Implications of the Energy Crisis Lessons from the Iberian Electricity Market
Author-Name: Natalia Fabra
Author-Email: natalia.fabra@cemfi.es
Author-Name: Clément Leblanc
Author-Name: Mateus Souza

Classification-JEL: L94, D30

Keywords: energy crisis, electricity markets, distributional implications, machine
learning.

Abstract: The 2021‐2023 European energy crisis, triggered by the war in Ukraine, led to broad policy
interventions in energy markets. In contrast to the retail‐side measures and public transfers
implemented elsewhere, Spain and Portugal targeted the wholesale electricity market through
the so‐called Iberian solution. We quantify the distributional implications of the crisis and this
market intervention on Spanish electricity firms and across consumer groups. We find that the
crisis shifted substantial wealth from consumers to generators, with regressive impacts among
consumers. Conversely, the policy’s relief was progressive, delivering larger gains to lower-
income groups.


Note: 
Length: 68
Creation-Date: 2025-11
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp716
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2025_716