Climate policies are multi-faceted: along with carbon pricing, multiple targeted sectoral policies are being launched. Carbon pricing is developing worldwide, notably via the implementation of markets for emission permits (Europe, California-Québec, China). These markets do not cover all emissions and the implementation of an economy-wide carbon price has proved difficult. Complementary policies include R&D subsidies, production subsidies (for renewable energies, electric vehicles, etc.), technical standards (e.g. the CAFE standards in the US transportation sector), among others. These policies aim at facilitating the transition towards a low carbon economy. Yet, whether they enhance or hinder the efficiency of climate policy is debatable. Critics say they constitute inefficient additions, if not substitutes, to carbon pricing; proponents, on the other hand, argue that they are necessary to make climate policy effective in the long-run. This research area will combine both approaches at the theoretical and applied levels.
Coordination: Guy Meunier (INRA and CREST, ENSAE Ecole Polytechnique)
Researchers: Geoffrey Barrows (Ecole Polytechnique), Silvia Concettini (University of Tours), Patricia Crifo (Ecole Polytechnique), Caroline Devaux (Université de Nantes), Andreas-Makoto Hein (CentraleSupelec), Juan-Pablo Montero (Department of Economics, PUC-Chile), Jean Philippe Nicolaï (University Paris 10 Nanterre), Jean-Pierre Ponssard (Ecole Polytechnique), María Eugenia Sanin (Inter-American Development Bank), Ingmar Schumacher (IPAG)
Doctoral students: Aurélien Bigo (Ecole Polytechnique-Cifre SNCF), Margarita Kirneva (Ecole Polytechnique), Jordi Planelles Cortes (Université Paris Saclay and University of Barcelona)
In this article we use the recent Covid-19 crisis to investigate what motivates individuals in their decisions to deal with two externalities, namely disease transmission, in particular social distancing, and the willingness to undertake green expenditure.
This note identifies the two major handicaps to be overcome by the hydrogen sector in transport and uses the example of buses to illustrate the public policies that can overcome these obstacles.
This study compares and quantifies the potentials of 5 drivers of transport CO2 emissions reductions within French prospective scenarios by 2050.
This paper investigates the potential benefit of coordinating local initiatives in Europe in the transport sector and provides an evaluation of the JIVE programs with respect to FCEB.
This article studies the contribution of information and communication technologies (ICTs) to a low carbon economy.
This working paper analyzes the impact of indirect network effects in the deployment of zero emission vehicles in a static partial equilibrium model.
This paper analyses the drivers of French transport CO2 emissions over the period 1960-2017. A decomposition analysis is used to evaluate the relative contribution of five key drivers of passenger and freight transports emissions: transport demand, modal shift, vehicle load factor, energy efficiency and carbon intensity of the energy.
This article analyzes the trade-off between yield and farmed area when a valuable species is affected by agricultural practices.
In this paper, we estimate for the first time how production and emissions of manufacturing firms in one country respond to foreign demand shocks in trading partner markets.
Based on the Norwegian experience with low-carbon vehicles, the authors analyse the hydrogen plan launched by Nicolas Hulot when he was Minister for Ecological and Solidarity Transition and make several recommendations.
Article published in Volume 39, Special Issue 2 of The Quarterly Journal of the IAEE’s Energy Economics Education Foundation. This article empirically investigates the...
In this paper we test for the existence of equity market contagion, originating from oil price fluctuations, to regional and domestic stock markets.
In this paper we model the EU-ETS in presence of the Market Stability Reserve (MSR) as it is defined by that decision and investigate the impact that such a measure has in terms of permits price, output production and banking strategies. Our main finding is that the MSR succeeds in increasing the permits' price...
this article analyzes the effect of the re-assignement of the French hydropower concessions through a competitive public procedure. It is based on the exemple of the Aspe valley, where more than 100 MW of hydro capacity is installed.
We introduce a theoretical framework for the analysis of competition between a traditional and a renewable generator in a spot electricity market where the electricity from renewable sources is always the first to be dispatched.
The Chair Energy and Prosperity Organized its thirs Workshop on Sustainable Mobility on November 9-10. You can download in this article the workshop's summary and all the speakers' presentations.
Output-based allocations (OBAs) are typically used in emission trading schemes to mitigate leakage in sectors at risk. Recent work has shown they may also help to stabilize prices in markets subject to supply and demand shocks. We extend previous work to simultaneously include both leakage and volatility.
The paper studies pollution permit markets in which a fraction of permits are allocated to firms based on their output. Output-based allocations, which are receiving increasing attention in the design of carbon markets around the world are shown to be optimal under demand and supply volatility despite the output distortions they may create.
Realised with Jean-Pierre Ponssard, this "Cahier de l'ILB" is dedicated to sustainable mobility. It deals with various subjects : how driving restrictions affect urban pollution, carbon footprint of motor vehicles in the United States, hydrogen vehicles, the importance of strong regulation to reap the full benefits of innovation in mobility.
Social pressure can help overcome the free rider problem associated with public good provision. In the social norms literature concerned with the private provision of public goods there seems to be an implicit belief that it is best to have all agents adhere to the ‘good’ social norm. We challenge this view and study...
Article published in Environmental and Resource Economics – September 2017 Abstract. We consider a partial equilibrium model to study the optimal phasing out of...
Published in Energy Policy June 2017. This paper studies merger incentives for polluting Cournot firms under a competitive tradable emission permits market.
Published in Energy Policy - Vol 104 - May 2017. We study the importance in terms of CO2 emissions the extra amount of energy necessary to cover losses. With this purpose we use Spanish market and system data with hourly frequency from 2011 to 2013. Our results show that indeed electricity losses significantly...
Gaël Giraud, Hélène L’Huillier (Université Lille 1) et Cécile Renouard (ESSEC Business School) ont publié dans la revue Oxford Development Studies un article sur...
Article publié dans The International Journal of Hydrogen Energy (24/12/16) The paper provides a cost benefit analysis of one of the most prominent Fuel...
Alena Kotelnikova – Doctoral thesis presented on Oct. 3 2016 – Université Paris Saclay and Ecole Polytechnique. What economic and policy framework would foster...
In this paper we study how the electricity market characteristics determines the choices made by electricity generators in the U.S. market for SO2 allowances.
In the last decade a growing articulation of the business strategy of the firms with some specific global societal challenge in line with its...
In Europe the transport sector contributes about 25% of total GHG emissions, 75% of which come from road transport. Contrarily to industrial emissions road...
We conduct a survey about the perception of physical distancing and the individual motivations for applying it. Thank you for your participation !
The Chair Energy and Prosperity organizes an international workshop on sustainable mobility on December. Subscription are open.
The workshop will promote exchanges between research scientists with decision makers on the key issue of land transportation for mitigating climate change. Call for paper open untill June 30.
Agenda Welcome speech (Béatrice Jarrige) Presentation of the chair activities for the coming trimester coming on“The energetic transition in transports “ (Jean-Pierre Ponssard) Aurélien Bigo...