Finance & economics | Free exchange

How to avoid energy rationing

Politicians should pay attention to the latest economic literature

Across europe, two questions will set the political weather this winter. How high will my energy prices go? And what will the government do to protect me? Attempting to shelter from the gathering storm, French and Spanish politicians, among others, have already capped or otherwise lowered gas and electricity prices. With wholesale gas futures for early 2023 still climbing—up to more than €300 ($299) per mwh, from less than €30 last summer—and Europe’s economic indicators blinking red, more will follow suit. That prospect is enough to drive economists to despair.

This article appeared in the Finance & economics section of the print edition under the headline “Everyone has a price”

Are sanctions working?

From the August 27th 2022 edition

Discover stories from this section and more in the list of contents

Explore the edition

More from Finance & economics

A ping pong game with a container instead of a ball.

Do tariffs raise inflation?

Usually. But the bigger problem is that they harm economic growth and innovation

A Gulfstream G600 from Hampshire Aviation Company lands at Barcelona Airport in Barcelona, Spain.

European governments struggle to stop rich people from fleeing

Exit taxes are popular, and counter-productive


Eagle claws, getting ready to collect bonds from a top hat.

Saba Capital wages war on underperforming British investment trusts

How many will end up in Boaz Weinstein’s sights?


Has Japan truly escaped low inflation?

Its central bankers are increasingly hopeful

How American bankers dodged the MAGA carnage

The masters of the universe have escaped an anti-globalist revolt