Research Fellows

Using Output-Based Allocations to Manage Volatility and Leakage in Pollution Markets

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.

Output-based allocations in pollution markets with uncertainty and self-selection

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. 

Debt and Investment in the Keen model: a Reappraisal of Modeling Minsky

We examine to which extent the Keen model (Keen 1995) is a faithful modelling of Minsky's Finance. We conclude that the Keen crisis has few Minskian flavours.

Global trends in metal consumption and supply element: the raw material–energy nexus

The consumption of mineral resources and energy has increased exponentially over the last 100 years. Further growth is expected until at least the middle of the 21st century. In order to meet this demand, more metals will have to be produced by 2050 than over the last 100 years, which raises questions about the sustainability and conditions of supply.

Mobility solutions for the energy transition – Cahier de l’Institut Louis Bachelier

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.

The importance of considering optimal government policy when social norms matter for the private provision of public goods

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 optimal government policy in a reference model (Rege, 2004) of public good provision and social approval in a dynamic setting.

The Chair’s seminar – Speaker Roger Guesnerie

Adrien Nguyen HuuResearch FellowsComments Off on The Chair’s seminar – Speaker Roger Guesnerie

The Chair Energy and Prosperity will welcome Roger Guesnerie in it's seminar on Septembre 29th. His speach will be on the following subject : "Calcul économique : à propos de quelques débats concernant le risque et le développement durable"

Workshop – Climate change, the energy transition and the financial system

France Stratégie and the Chair Energy et Prosperity are teaming up to organize a workshop on the contribution of the financial system to the energy transition and climate stabilization. The

Stopping Behaviors of Naïve and Non-Committed Sophisticated Agents when They Distort Probability

We consider the problem of stopping a diffusion process with a payoff functional involving probability distortion. We study stopping decisions of naïve agents who reoptimize continuously in time, as well as equilibrium strategies of sophisticated agents who anticipate but lack control over their future selves’ behaviors.

Defining the Abatement Cost in Presence of Learning-by-doing: Application to the Fuel Cell Electric Vehicle.

Article published in Environmental and Resource Economics – September 2017 Abstract. We consider a partial equilibrium model to study the optimal phasing out of...