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Towards a general “Europeanization” of EU Member States’ energy policies?

It is often argued that energy policy is too fragmented across EU Member States and should be "Europeanized" to pave the way towards an efficiently organized European power system, which rests on the internal market for energy and a pan-European super-grid. However, this view neglects i) the heterogeneity of European energy policies in terms of harmonization and centralization, ii) economic arguments in favor of decentralization and iii) legal as well as political-economic obstacles against centralization of decision making. In this vein, we point out that a plea for a stronger role of the EU needs to be made with care and differentiation.
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JEL Codes:L51: Economics of Regulation, H23: Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies, Q41: Energy: Demand and Supply; Prices

Keywords: Centralization, Energy transition, EU climate and energy policy, Fiscal federalism, Harmonization, Political economy

DOI: 10.5547/2160-5890.4.2.sstr

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Published in Volume 4, Number 2 of The Quarterly Journal of the IAEE's Energy Economics Education Foundation.