Publication: Energy Crisis: Protecting Economies and Enhancing Energy Security in Europe and Central Asia
Date
2022-10
ISSN
Published
2022-10
Author(s)
World Bank
Abstract
This companion piece to the Fall 2022 ECA Economic Update provides an overview of the policy options available to
countries to respond to the energy price shock and examines how this
crisis could harness the clean energy transition to enhance collective
energy security. The options to support energy markets, vulnerable households,
and firms will vary, depending on specific country contexts, including
exposure to gas and electricity supply risks and the fiscal space available
to mitigate their impact. Well-coordinated and calibrated fiscal and
monetary policies are needed to manage the impact of the price shock.
Countries will also need to consider the implications of any policy choice
on the transition to a greener economy and development trajectories. This note is organized as follows. Section 2 provides an overview of the
broader economic impact of the energy price shock on economic growth,
inflation, and public finances in the ECA region. Section 3 provides policy
options to help countries adapt to the energy crisis related to managing
both demand and supply. Section 4 presents a set of principles to guide
the policy response for supporting vulnerable households. Section 5 presents
a set of principles to guide the policy response for supporting firms.
Section 6 concludes with a summary of recommendations for dealing with
the crisis and transitioning to a greener economy.
Citation
“World Bank. 2022. Energy Crisis: Protecting Economies and Enhancing Energy Security in Europe and Central Asia. © Washington, DC. http://hdl.handle.net/10986/38101 License: CC BY 3.0 IGO.”