Search

Search Results

• Energy prices and subsidies – Is Europe losing?

  20-48

  Sarolta Somosi

  Éva Voszka

  Views:

  2545

  In the early 2020s, several large US public investment subsidy programmes, followed by a surge in energy prices as a consequence of the Russia-Ukraine war, have raised concerns in Europe. This article examines these two recent causes of the weakening of the EU's competitiveness, focusing on the impact of the US Inflation Reduction Act (IRA) on investment diversion. Based on an analysis of the initial consequences of the IRA and some patterns of corporate behaviour, it concludes that, in an environment of political uncertainty, the relocation of firms and investment to the US is not yet a mass phenomenon, but that the new situation may lead Europe to develop new coherent strategies.

  Journal of Economic Literature (JEL) codes: F21, F68, L50, L62, O14, O25

• The prospects of uniformization of the internal market of electricity in the European Union

  3-22

  Eva Sztanko

  Views:

  386

  The European internal market of electricity is not yet uniform, although it has been moving toward this direction for the last two decades. The energy market position of the consumers has been strengthening, the liquidity and the cross-border trade of the European electricity markets has been increasing. The stronger competition limited the wholesale prices. Despite the backsliding or stagnating household and industrial consumption, however, the retail prices and the costs have been increasing. The EU has to carry on reforming the electricity market in order to satisfy the need for more flexible energy-systems, to increase the competition, to make the consumers react to price changes in a more flexible way, to create more cost-effective governmental/market measures to handle price volatilities, to finance investments, and to minimise cost increases. The most recent comprehensive recommendations of the European Committee intend to create a new electricity market model, however, it yet remains to see the reception of these on behalf of the member countries.

  Journal of Economic Literature (JEL) code: Q48