Publications of the Chair

Mitigating greenhouse gas emissions from the cattle sector: land-use regulation as an alternative to emissions pricing

2023
Authors :
Maxence Gérard, Stéphane De Cara, Guy Meunier

The cattle sector, both emissions- and land-intensive, represents a great opportunity for mitigation through reforestation. In this paper, we study the efficiency of land-use regulation. Our analytical results indicate that the subsidy is the best alternative policy to emissions tax, provided that the elasticities of land use and emissions to cattle feeding are close. Interestingly,...

Decarbonization with Induced Technical Change: Exploring the Niche Potential of Hydrogen in Heavy Transportation

2023
Authors :
Albin Kasser, Elodie Le Cadre Loret, Guy Meunier, Jean-Pierre Ponssard, Mures Zarea

Electric batteries and fuel cells (hydrogen) are competing technologies for the energy transition in heavy transportation. This paper shows that the existence of a market niche for fuel-cell electric buses (FCEBs) can be obtained depending on the values of a limited set of key parameters.

Do French firms follow a transparent or climate-friendly path?

2021
Authors :
Jeanne Amar, Samira Demaria, Sandra Rigot

Our analysis of the Climate Risks and Opportunities Index (CRORI) and the CDP climate score reveal a parallel improvement of these indices with different sectoral disparities over the 2015–2019 period. While our results are encouraging, they need to be put into perspective because these firms are still far from being carbon neutral.

Mineral Resources and the Salience of Ethnic Identities

2023
Authors :
Nicolas Berman, Mathieu Couttenier, Victoire Girard

Our findings suggest a new dimension of the natural resource curse: the fragmentation of identities, between ethnic groups and nations.

The design flaw in Sustainability-Linked Bonds

2023
Authors :
Julien Lefournier

We examine in this paper sustainability-linked bonds (SLBs) whose issuance now totals more than USD 200 bn. There is a structural design flaw in the SLB mechanism: setting a significant coupon step-up does not suit the issuer’s nor the investors’ interests, considering conditionality. This creates a no win situation for the issuer and investors alike and explains the “benign”...

Extending the limits of the abatement cost

2021
Authors :
Guy Meunier, Jean-Pierre Ponssard

The paper examines the relevant cost benefit framework for state agencies investigating the potential of local projects to mitigate climate change. We propose a new metric that incorporates into the analytical framework the dynamic interactions between the project and its continuation.

Over-allocation profits and competition issues in the steel industry

2023
Authors :
Maria-Eugenia Sanin, Sylvain Sourisseau

Sectors that are considered to be subject to international competition under the European Emission Trading Scheme (EU-ETS) still benefit from free allocation of European Allowances (EUAs). Herein we study one of those beneficiaries: the crude steel industry. Our findings suggest the EU-ETS has failed to provide incentives for decarbonization in this sector.

There’s no price signal !

2023
Authors :
Ivar Ekeland, Wolfram Schlenker, Peter Tankov, Brian Wright

We address the long-standing challenge of adding optimal exploration to the classic Hotelling model of a non-renewable resource. We prove that a frontier of critical levels of proven reserves exists, above which exploration ceases, and below which it proceeds at infinite speed.

Attractiveness of Clean Energy Stocks in Europe: The importance of shocks in oil and gas prices

2023
Authors :
Maria Eugenia Sanin, Ayşegül Uçkun Özkan

This article identifies supply and demand shocks in the oil and gas market using monthly data (from January 2008 to December 2021) and explores their impact on clean energy stock returns in Europe. Our results show that a negative gas supply shock positively affects clean energy stocks, while a negative shock in global oil supply does not have...

Access to electricity and children well-being: new evidence from Rwanda

2023
Authors :
Lucien Vignawou Ahouangbe, Ahmed Tritah

In this study, we analyse how access to electricity affects children’s well-being in Rwanda through the allocation of their time in the different activities of domestic production and their leisure time.