Micro-economics fundamentals

This research axis aims to provide a conceptual framework for integrating the following dimensions in the micro-economic models of the energy transition:

  • The explicit consideration of adjustment costs, experience effects, existence of convexity in the capital costs associated with the development of a new technology.
  • The existence of competition and complementarity between technologies.
  • New modes of public intervention and the most suitable financing (taxes on fossil energy emissions, subsidies, standards and norms…) including a reflection on competition policy (cooperation agreements, temporary exclusivity rights…).
  • The reflection on this axis will be based initially on the analysis of challenges in the transport sector. This concerns not only vehicles (electric, hybrid, hydrogen…) but also energy management tools of public transport, modal shift to public transport and new shared door-to-door mobility facilitated by on-line services and big data.

Two research initiatives have been set up under this axis: