Understanding how firms interpret and respond to carbon price signals based on their strategic priorities is crucial for aligning climate policies with corporate financial and environmental objectives. By examining how carbon price signals can shape firms’ financial–environmental priorities, these findings offer actionable insights for designing policies that better balance profitability and sustainability in the...

his paper studies the adoption of clean technology in an oligopolistic setting, focusing on carbon capture and storage (CCS) in the cement sector. Firms can choose between two technologies: a carbon-
intensive ("dirty") technology and a low-carbon ("clean") one.

Globally, the transport sector is the second-largest source of CO2 emissions, with private road transportation accounting for the majority of these emissions. In this study, we use a structural model and a novel dataset of the French new and used car markets to estimate the determinants of private car demand and price sensitivity. Our findings...

To improve the management of the public water supply service in the city of Chennai, the French utility company Veolia provided to Chennai Metro Water technical assistance from 2002 to 2006, under the institutional support of an international donor, the World Bank.  This case illustrates how instilling managerial and technical changes in public water utilities...

To improve the management of the public water supply service in the city of Chennai, the French utility company Veolia provided to Chennai Metro Water technical assistance from 2002 to 2006, under the institutional support of an international donor, the World Bank.  This case illustrates how instilling managerial and technical changes in public water utilities...

Cette thèse examine les conditions économiques dans lesquelles l’hydrogène vert peut être efficacement déployé pour accompagner la transition énergétique des secteurs industriels difficiles à...  

Urban green spaces improve quality of life, but may reduce car space. We first propose a theoretical model to analyze this trade-off. Positive global willingness-to-pay (WTP) is observed for scenarios that improve biodiversity and air cooling with minimal loss of car space, while negative WTP arises when car space is greatly reduced without substantial...

This one-day workshop took place on 19th May 2025 and brought together researchers working on the design, evaluation, and impact of climate policies aimed at fostering the development and diffusion of low-carbon technologies. Access the slides for each presentation and a summary of the event.

The aim of this article is to demonstrate that the “Corporate Welfare” policies are embedded in a complex, dynamic and unstable mode of regulation.

Hydrogen valleys, which integrate renewable energy sources, hydrogen infrastructure, and end-use applications, play a crucial role in decarbonizing industrial energy hubs. However, the large-scale deployment of hydrogen is constrained by limited renewable electricity availability and high technology costs. A key insight from our analysis is that the merit order of hydrogen end-uses is dynamic, evolving...

On February 7, we hosted the 11th International Conference on Mobility Challenges, where we engaged with leading academics, stakeholders from the automotive industry, civil...  

Grass-based beef cattle production systems are generally perceived as beneficial to the environment. However, the climate impact of grass-based systems compared to systems based on energy-dense feeds remains controversial. The findings highlight potential trade-offs between climate goals and other sustainability objectives (e.g., biodiversity, animal welfare).

The recent inclusion of second-hand EV subsidies in several countries raises questions about their economic rationale. Contrary to conventional thinking, we show that while subsidies for second-hand EVs are often justified on equity grounds, they also improve efficiency as they influence the equilibrium composition of the vehicle fleet.

Herein we study carbon taxation considering the structure of the global production network. With this purpose we characterize how the implementation of a carbon tax in one country-sector can generate sizeable fluctuations on global emissions and welfare through its impact on the structure of production.

This paper leverages a new method in the construction of credible counterfactuals for causal inference. This paper adopts a Bayesian structural time series (BSTS) modeling framework alongside a set of contemporaneous predictors related to power sector emissions to build counterfactual estimates of emissions for each post-intervention period and analyze the policy implementation effect by...

Cet article étudie dans le cadre d’un modèle d’équilibre partiel à deux pays, le Nord et le Sud, les effets du changement de localisation des entreprises dans un contexte de concurrence internationale et imparfaite. 

Agglomeration bonuses (ABs) are payments conditional on the contiguity of landowners’ conservation areas. It is widely accepted that, by encouraging landowners to cooperate, ABs promote more cost-effective biodiversity conservation than instruments targeting landowners individually. This article challenges this conclusion by studying the impacts of different AB designs, some of which explicitly aim to enhance...

Bioenergies from dedicated crops or wood have faced substantial criticisms due to their significant land requirements. Certain bioenergy pathways, such as biogas generated from crop residues, manure, or food waste, appear to be exempt from this criticism. However, these feedstocks are byproducts of agricultural activities that generate emissions not covered by current climate policies in...

Les pratiques de mobilité des Français. Graphiques de novembre 2024 issus d’une analyse avec Fabien Perez (SDES) à partir des données de l’enquête mobilité des personnes (EMP) de 2019. 

Despite extensive research on sustainable business models and the development of various tools to facilitate their implementation, barriers persist particularly concerning the governance of a local ecosystem of actors. We identify that a facilitating public policy framework combined with internal institutional, strategic and operational drivers linked to the governance of local ecosystems is crucial...

This thesis mainly contributes to the literature on the circular economy by providing a strategic vision of the process of securing secondary resources in circular projects. The thesis also has managerial implications by offering insights into the governance mechanisms, territorial dynamics, and market arrangements that underpin successful circular economy initiatives.

The publication aims at anwsering the following questions :

We examine the efficiency of a subsidy to cattle farmers for setting aside land for natural ecosystem regeneration. We develop a partial equilibrium model of the cattle sector that integrates land use, greenhouse gas emissions, and animal feeding. We identify conditions under which the subsidy is the best alternative to these other second-best policies.

In September 2020, the city of Bogotá introduced a major market-based reform to its odd-even driving restriction. The big winners of the reform are middle-income individuals who now use their cars more often, whereas the big losers are high-income individuals who now spend more time in traffic.

Adopting disruptive technologies for decarbonizing hard-to-abate industrial sectors requires experimentation through demonstration (pilot) projects. However, from an economic perspective, the potential long-term benefits and the difficulties in designing relevant public policies are not addressed in the standard valuations of those projects.

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.

Several European governments implemented a generalized gasoline subsidy in the face of inflation following the Ukrainian crisis. In contrast, reducing fossil fuel consumption is crucial to mitigate the current energy and climate crises. Fuel consumption for transport increases with income, making rich households the main beneficiaries of generalized subsidies. In this context, a thorough...

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,...

Recent recovery plans, associated with the COVID‐19 pandemic and the energy transition, increased the funding available to finance innovative low‐carbon projects and called for an economic evaluation of their allocation. This paper analyzes the potential benefit of using repayable advance: a lump‐sum payment to finance the project that is paid back in case of...

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.

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.

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.

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...

This paper analyzes the optimal reward scheme in an organization involving agents with social preferences whose tasks are complementary.

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...

Article published in Energies 2022, 15. Investments into wind generation may be hampered by revenues uncertainty caused by the natural variability of the resource, the...  

This article studies the exploitation of recyclable exhaustible resources such as metals that are crucial for the energy transition or phosphorus that is crucial for agricultural production. We use a standard Hotelling model of resource exploitation that includes a primary sector and a recycling sector.

The objective of the conference was 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, multilateral agreements, and sectoral climate policies.

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...

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...  

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.

Les documents en lien avec la thèse d'Aurélien Bigo "Les transports face au défi de la transition énergétique. Explorations entre passé et avenir, technologie et sobriété, accélération et ralentissement" sont présentés sur cette page

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.

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...  

Le laboratoire GAEL (Grenoble Applied Economics Laboratory) et la Chaire Energie et Prospérité organisent un workshop sur l’économie de la bioénergie les jeudi 9 et vendredi 10 octobre 2025 sur le campus universitaire de Grenoble.

This one-day workshop brings together researchers working on the design, evaluation, and impact of climate policies aimed at fostering the development and diffusion of low-carbon technologies. The presentations will cover a range of topics including the regulation of urban transport emissions, the integration of carbon dioxide removal into energy markets, the strategic adoption of...

The 11th edition of the annual International Conference on Mobility Challenges brings together experts from academia and industry, pushing the frontier of challenges at the intersection of automotive, energy, and mobility sectors. We welcome internationally renowned speakers as well as participants from the three sponsoring chairs, along with specialists from a wide range of...

The Chairs Armand Peugeot, Energy and Prosperity, and Climate Economics are organizing, on December 6th an 7th, 2023, the 10th edition of the annual international Conference on Mobility Challenges.

La 9ème édition de la conférence internationale sur les défis de la mobilité réunit des professionnels des mondes académiques et industriels pour explorer les défis majeurs à l'interface des industries automobiles, énergétique et de la mobilité. Le premier jour sera consacré à une série d'interventions et de tables rondes ; le second jour sera...

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...