[Discourse] The Folly of an EU-Wide Cap on Gas Prices

The EU may try but will ultimately fail to price-cap its way out of its current energy woes

The war in Ukraine has awakened Europe from its geopolitical slumber and has proved to be a catalyst for EU policy — including bad policy. Ahead of an emergency meeting of the EU Council set for next Friday, the bloc is yet again mulling an affront to textbook environmental economics. The energy price cap that a few heads of state are reportedly endorsing would be a potentially disastrous distortion to European markets and would, at enormous cost, do little to address the continent’s present energy woes.

Continue reading the entire piece at Discourse, a magazine at George Mason University’s Mercatus Center, here.