3 ms·
The price of petrol is higher in Europe than the US primarily because of taxes. There is an effect from domestic oil production but taxes are a much bigger par
by thinkcontext 3y ago
The price of petrol is higher in Europe than the US primarily because of taxes. There is an effect from domestic oil production but taxes are a much bigger part of it.
Electricity is a bit different. This article from 2018 argues its because of renewables surcharges. Since then, natural gas prices have diverged quite a bit so that's a much bigger factor today.
http://euanmearns.com/the-causes-of-the-differences-between-european-and-us-residential-electricity-rates/ http://euanmearns.com/the-causes-of-the-differences-between-...
- mschild 3y agoElectricity is a bit more complicated in Europe since a lot of the national grids are interconnected. German prices, and some other European ones afaik, are determined by the merit order principle. https://www.ostrom.de/post/the-merit-order-and-how-it-affects-electricity-prices https://www.ostrom.de/post/the-merit-order-and-how-it-affect...
- phicoh 3y agoYou cannot say that there a certain price for electricity. There are spot markets, which are quite transparent, which is why the prices from spot markets are often quoted. The spot markets indeed often use merit order. But there are many more ways to trade electricity. And, for example, in The Netherlands only about one third of electricity is traded on the spot market.