Download or read book The Effectiveness and Distributional Consequences of Excess Profit Taxes Or Windfall Taxes in Light of the Commission's Recommendation to Member States written by and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The present document is the executive summary of the study on The effectiveness and distributional consequences of excess profit taxes or windfall taxes in light of the Commission's recommendation to Member States. The aim of this study is to analyse the effectiveness of windfall profit taxes, in particular with respect to the Commission's recommendation to the Member States and to quantify the potential tax revenues. Moreover, the study briefly summarizes considerations on the distribution of collected revenues. To this end, the study discusses design features of windfall profit taxes and summarizes historical experiences. Based on these insights, the study briefly presents the content of the Council Regulation and provides an overview on windfall profit taxes already implemented in the EU. For a better understanding, the study describes the basic functioning of power markets in the EU and discusses the role of coordination for windfall taxes as a policy tool. Furthermore, one aim of the study is to quantify the level of expected tax revenues. The quantification of the solidarity contribution is based on firm level profits and reference profits from the ORBIS database. The quantification of the revenue cap uses data on day-ahead-prices and actual generation volumes by production type from the ENTSO-E Transparency Platform. Finally, the study provides a critical analysis of the foreseen measures with respect to its effectiveness of collecting revenue but also evaluating efficiency issues and redistribution potential.