What’s the impact of different forms of energy subsidies in crisis time?

2021 marked the beginning of the energy crisis. Following economic disruptions caused by the COVID-19 pandemic and the beginning of the Russian invasion of Ukraine, consumer prices surged worldwide whilst output growth slowed. In response to this energy price crisis, European governments introduced policies to contain the cost of energy and limit undesired impacts on households. Not all policies were designed in the same way. Support ranged from subsidies to businesses, transfers to vulnerable household groups and reduced taxes on energy. In addition, countries debated the possibility of taxing “windfall” energy companies’ profits to support these policies.