Working Paper | 2025

Who Benefited from Relief? Distributional and Justice Impacts of Germany's 2022/23 Energy Crisis Policies

  • Entscheidungsprozesse & Politik
  • Soziale Gerechtigkeit
  • Mission Energiesystem
  • Politik
  • Wissenschaft

The 2022/23 energy price surge, triggered by the Russian invasion of Ukraine, threatened the financial stability of low- and middle-income households in Germany. In response, the federal government introduced three relief packages combining universal transfers, targeted support, and temporary price caps. This paper uses a behaviorally calibrated microsimulation based on EVS 2018 data to assess the distributive, poverty-reducing, and environmental effects of these measures.

Energy poverty is defined using a residual-income approach: households are energy-poor if their income, after housing and energy costs, falls below the poverty threshold. Without relief, income poverty would have risen by 0.29 percentage points, and energy poverty by over two points. The relief measures – especially housing benefit reform and the gas price cap – significantly cushioned these effects. Including behavioral adjustments, most of the burden is offset.

Distributional outcomes were mixed: absolute relief favored higher incomes, but relative gains were progressive. Behavioral responses helped reduce both household burdens and emissions. However, broad price interventions (e.g., fuel tax rebate) were regressive and environmentally harmful. The findings underscore the value of targeted, accessible transfers that maintain price signals. The paper concludes with policy lessons for integrated crisis response strategies. 

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Herausgeber

SSRN Working Paper Series

Autor:innen

Praktiknjo, Aaron; Seeger, Karl; Priesmann, Jan

Erscheinungsdatum

2025

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