“…Contrarily, using revenues from carbon pricing to limit envisaged increases of electricity prices has comparatively progressive implications, since poorer households spend a larger share of total expenditures on electricity than richer households do. On the supply-side, a carbon price in Israel would provide incentives to shift electricity generation from coal-fired power plants, which accounted for 28% of Israeli electricity generation in 2020 (IEA, 2021), to gas-fired turbines (65%, respectively) or to low-carbon electricity generation technology, such as solar power, for which Israel has ample potential (Navon et al, 2020;Halász and Malachi, 2014). Nevertheless, capping electricity prices on the supply-side, i.e., in firms and households, does not induce an economic stimulus for strengthening energy efficiency of consumption.…”