Russia’s large-scale aggression against Ukraine has contributed to high energy prices around the globe, triggering responses from governments. Governments across the OECD and in key non-Member economies have rolled out significant support to shield households and firms from the impacts of the high energy prices that followed the strong recovery in demand in the aftermath of the COVID-19 slump and the fallout of the war in Ukraine. While relatively simple to introduce and communicate in general, measures that act to lower the price of energy are not targeted and weaken incentives to reduce energy use when supply is tight.
