Sharp Rise in Energy Prices

Based on a preliminary analysis of 10 March 2022, a WIFO Research Brief by Josef Baumgartner, Gabriel Felbermayr, Claudia Kettner-Marx, Angela Köppl, Daniela Kletzan-Slamanig, Simon Loretz and Margit Schratzenstaller has now been published.

As in many other countries, a number of relief options are currently being discussed in Austria. Two measures have been called for particularly intensively in the recent public debate: the postponement of the introduction of a CO₂ price planned for July 2022 and the reduction of the VAT rate for energy. However, these two options turn out to be less suitable for several reasons. Much more suitable are more targeted and accurate measures to cushion the loss of purchasing power.