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.

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.

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.

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...  

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

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 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 working paper analyzes the impact of indirect network effects in the deployment of zero emission vehicles in a static partial equilibrium model.

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.

This paper analyzes the potential benefit of using subsidies conditional on success or failure of an R&D program, rather than a flat subsidy.

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.

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. 

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...  

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.

The workshop aims to identify the key uncertainties and debates regarding the role of bioenergy in a climate neutral economy, at national and global scales, and the challenges for the design of climate policies.

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 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.

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...