Innovation is key for the energy transition as it allows to reduce the cost of existing low-carbon technologies and to develop new clean technologies...  

This paper studies the gains and losses incurred during the COVID-19 pandemic. A comparison between the gains and losses triggered by both the pandemic and the lockdown indicates that an excess profits tax imposed on the ‘winners’ could partly compensate the ‘losers’ of the same sector.

On Dec 9-10, 2021, the annual International Conference on Mobility Challenges provided an outstanding opportunity to bring together researchers, industry experts and policy makers to discuss these issues. This note gives a summary of the debate.

Article accepted in the Revue d’Economie Industrielle Hydrogen is a possible alternative to the internal combustion engine, alongside battery-powered vehicles, in the context of reducing greenhouse...  

This paper investigates the design of a recent regulatory proposal aimed at favoring the emergence of a
battery recycling industry in Europe. It develops a material flow model that projects battery wastes and their recycling potential. Our findings indicate that the feasibility of the European Commission proposed thresholds is not very sensitive to changes of material intensities...

The present paper addresses the issue of sectoral policy coordination, especially when Pigovian carbon pricing is unavailable. It analyzes the optimal allocation of mitigation effort among two vertically connected sectors, an upstream (e.g. electricity) and a downstream (e.g. transportation) one.

An imperfectly-informed regulator needs to procure multiple units of some good that can be produced with heterogeneous technologies at various costs. How should it optimally procure these units? We find that one size does not fit all: the preferred instrument depends on the costs of the available technologies, their degree of substitutability, the extent of information asymmetry,...

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.

Download the presentations by the participants of the international conference on mobility challenges, organized on December 9 and 10, 2021, by the Energy and Prosperity Chair, in partnership with the Armand Peugeot Chair and the Climate Economics Chair.

An innovative modelling framework and metrics are developed to assess the economic and environmental performances of regional incentives in the wood energy sector. Our approach is based on the coupling between a partial equilibrium economic model of the forest sector with Life Cycle Assessment (LCA). Its originality relies on the computation of regional eco-efficiency...

Article published in Transportation Research Part A: Policy and Practice Congestion and local air pollution continue to be a serious problem in many cities around...  

We develop an algorithm called M.I.D.A.S. (Italian Day-Ahead Market Solver) that simulates by iterative splitting the hourly equilibrium (price-quantity) of the Italian day-ahead market taking into account all transmission constraints between zones and the import from neighbouring countries. The algorithm is employed to study the sensitivity of equilibria to changes in production from units employing variable renewable sources, notably...

This paper demonstrates that the offshoring of a dirty firm as compared to the offshoring of a clean firm is worse for the environment, better for northern consumers, and better for the domestic profits. The results are reversed in case of reshoring.

You can download here the speakers presentations and the report of the panel session.

Investments into wind generation may be hampered by revenues uncertainty caused by the natural variability of the resource, the impact of climate change on...  

We assume that a project requires an initial outlay and may either succeed or fail. The probability of success depends on its type and...  

This article examines the merits of making aid conditional on environmental efforts.

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.

The aim of this article is to identify the conditions under which teleworking leads to a net reduction in economy-wide energy consumption, and the circumstances where benefits may be outweighed by unintended impacts.

This report uses the cost-benefit analysis framework to assess the economic efficiency of the Zero Emission Valley, both from the private and public perspectives, compared to a diesel mobility status quo scenario.

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 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.

Sectors subject to international competition still benefit from free allocation of EU Allowances in Phase III of the EU ETS market. A frontier analysis in the steel industry show that most free permits are allocated to most polluting firms. Hence, we highlight that by protecting the EU steelmakers from international competition, free EUAs lead to a...

We develop an open-source Python software integrating flexibility needs from Variable Renewable Energies (VREs) in the development of regional energy mixes. It provides a flexible and extensible tool to researchers/engineers, and for education/outreach.

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.

The development of new technologies to address the challenges of decarbonized mobility in cities, such as hybrid, battery or fuel cell technologies, suffer from...  

Implementation of big innovative projects is often subject to big financing problems. On the one hand, the possibly profitable project can require an outstanding...  

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...  

The objective of the conference is to improve our understanding of the interaction between climate and innovation policies in this multi-layer governance landscape by bringing together scholars in economics working on innovation policies, international environmental agreements, and environmental federalism.

The Chair Energy and Prosperity Chair is organizing on December 9 and 10, an international conference on mobility challenges in partnership with the Armand Peugeot Chair and the Climate Economics Chair.

The Chair Energy and Prosperity Chair is organizing on Decembre 14, an international webconference on mobility challenges in partnership with the Chair Armand Peugeot Chair and Climate Economics Chair.

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...  

Subject of the worskshop “CO2 pricing and sectoral complementary policies” Climate policies are multi-faceted: along with carbon pricing, multiple targeted sectoral policies are now...