Especially with the 2022 Ukraine energy prices, the notion’s popularity spiked along.
Seems to me also a very neat way to deal with supernormal short-term profits due to market price spikes, in cases where supply is extremely inelastic.
I guess, and some commentaries suggest, in actual implementation, with complex firm/financial structures etc., and with actual clumsy politics, not always as trivial as it might look on first sight, but feasible, and some countries managed to implement some in the energy crisis.
Called Windfall Tax
Random examples:
VOXEU/CEPR Energy costs: Views of leading economists on windfall taxes and consumer price caps
Reuters Windfall tax mechanisms on energy companies across Europe
Especially with the 2022 Ukraine energy prices, the notion’s popularity spiked along.
Seems to me also a very neat way to deal with supernormal short-term profits due to market price spikes, in cases where supply is extremely inelastic.
I guess, and some commentaries suggest, in actual implementation, with complex firm/financial structures etc., and with actual clumsy politics, not always as trivial as it might look on first sight, but feasible, and some countries managed to implement some in the energy crisis.