The Energy and Prosperity Chair was created in 2015 to inform the decisions of public and private actors in managing the energy transition. The research conducted focuses on the impacts of the energy transition on economies (growth, employment, debt), on sectors of activity (transport, construction, energy production, finance), on associated financing methods as well as on the problems of access to energy.

The work of the Chair focuses on 4 areas of research:

Axis 1 — Sectoral policies for the energy transition

Climate policies are multi-faceted: alongside carbon pricing, multiple targeted sectoral policies are being launched. Carbon pricing is developing globally, in particular through the establishment of emission permit markets (Europe, California-Quebec, China). These markets do not cover all emissions and implementing an economy-wide carbon price is difficult. Complementary policies include R&D subsidies, production subsidies (for renewable energies, electric vehicles, etc.), technical standards (e.g. CAFE standards in the transportation sector in the United States), among others. These policies aim to facilitate the transition to a low-carbon economy. However, it is questionable whether they reinforce or hinder the effectiveness of climate policy. Critics say they are ineffective additions to, or even substitutes for, carbon pricing; proponents, on the other hand, say they are necessary to make climate policy effective in the long term. This research axis will combine the two approaches at the theoretical and applied levels.

Research topics: sustainable mobility and infrastructure; energy transition and smart cities; renewable energies; innovation and technological change

Axis 2 — Macroeconomic and societal challenges of the ecological transition

The ecological transition raises multiple questions studied in axis 1 dedicated to sectoral policies: which technology or industrial organization to promote, which sectoral policies to design and implement... It also calls into question the integration and coherence of all these sectoral policies, and questions the interaction between purely economic considerations and more ethical or political considerations. Axis 2 “Macroeconomic and societal challenges of the energy transition” aims to study these transversal themes, to study the energy transition not analytically, by focusing on the components one by one, but in a systemic way, by considering the system of relationships between these components.

The goals are as follows:

study the possibility and feasibility of the energy transition from a macroeconomic point of view, taking into account the specificities of the political instruments or tools available at this level, explore the range of energy transition policies, beyond sectoral economic policies (taxes, quotas, subsidies), for example monetary, financial and subsidies, for example, monetary, financial and macro-prudential policies, for example monetary, financial and macro-prudential policies, in relation to axis 3, reflect on the justice of the energy transition, which implies developing theoretical criteria for justice, of integrate the demands for social justice expressed in public discourse and to design indicators to measure them, identify the dimensions affected by or affecting the energy transition through the economic system (demographic dynamics, financial instability) in order to highlight the difficulties or opportunities overlooked, more generally, to produce empirical or theoretical analyses that shed light on the systemic aspects of the energy transition, participate in debates on the justification and legitimacy of the modalities of the energy transition and contribute to the information of decision-makers and citizens.

Research topics: The research program is currently more oriented towards macroeconomic modeling but it will gradually expand during the second phase of the chair. It is currently organized around three main research themes: theoretical challenges of modeling the energy transition according to the Coherent Stock-Flow (SFC) principle; developing methods for modeling CFS and applying them; ecological transition and climate change

Axis 3 — Financial regulation and innovative financing for the energy transition

Adapting the financial system is one of the main challenges posed by the transition to a low-carbon economy. The research work already carried out has shown the lack of long-term investors, the need for new products and strategies, both on the part of private actors and public authorities, not only to align financial flows with the goals of the energy transition, but also to deal with the new financial risks associated with climate change.

Future work will be structured around these issues and will benefit from seminars on financing the energy transition organized with the joint participation of researchers, professionals and regulatory authorities. Working papers, policy papers and academic articles will take stock of the state of debate and knowledge on financing issues and the financial risks of the energy transition.

Research topics: financial regulations for the energy transition; the evolution of the central bank in the context of the energy transition; innovative financial programs for the energy transition; corporate governance and energy transition.

Axis 4 — Access to energy

Access to energy is a major challenge for developing countries. Insufficient infrastructure and production capacities, poor reliability, poor access for poor people and rural areas are some of the issues to be addressed. Households in developing countries still lack access to modern energy services that are affordable, clean, reliable, and safe, and pay high prices for low-quality substitutes. However, there are major differences between regions. With the exception of a few major oil-producing countries, sub-Saharan countries as a whole lack access to significant domestic fossil fuel reserves and rely on imports for much of their energy needs. This situation entrenches poverty, limits the provision of local services, increases vulnerability to climate change, limits the expansion of opportunities, erodes environmental sustainability locally, nationally, and globally, and creates negative impacts on human capital. The aim of our research program is to produce a body of knowledge that is useful in meeting these challenges. This knowledge, based on rigorous empirical and theoretical analysis at the microeconomic level, will help design appropriate policy options, business models, and regulatory environments. Emerging and developing countries should be taken into account in order for energy to produce the expected benefits for the large segment of populations currently excluded in these countries.

Research topics: What are the financial, behavioral, institutional and regulatory barriers to access to energy? What are the paths that lead from energy to development? Causal mechanisms and constraints Design an appropriate regulatory framework and business models for energy access in developing and emerging countries.

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