The purpose of this initiative is to provide a space for academic research that examines different innovative financial transition channels (financial engineering and regulation), as well as tools for evaluating their performance.
The work carried out by the Committee of Experts for the National Debate on the Ecological Transition has revealed a number of major issues related to the implementation of the transition. Today we have several transition trajectories (inspired by various scenarios: Negatep, ADEME, Ancre, Negawatt, etc.), which are distinguished by changes in the level of energy demand, by the penetration of new uses (behaviours and technologies), by the nature of the energy mixes envisaged and by the speed of implementation of these changes between now and 2050.
This general theme will be developed around three axes.
Axis 1: Microeconomic foundations of the energy transition
The aim of this research axis is to provide a conceptual framework for integrating the following into microeconomic models of the energy transition: explicit consideration of adjustment costs, experience effects, and the existence of convexity in the investment costs associated with the development of a new technology.
Axis 2: Macroeconomic and environmental evaluation of the economic transition
The aim of this research axis is to improve the representation of the “growth engine” of macroeconomic energy transition models by integrating the following:
Axe 3: Innovative financing
The linkage between Axes 1 and 2 will make it possible to explore the cost-effectiveness of transition scenarios. This deepening naturally leads to the question of financing the energy transition, which will be tackled in two parts. The first part will study the feasibility of innovative financing methods associated with different modes of transitions at national, continental (Europe) or global (Green Fund, for example) levels. The second part will be of a prudential and accounting nature, emerging from the following observation: the great difficulty that the banking and insurance sectors have in financing the long-term investments associated with the infrastructure needed for the transition stems also from the prudential and accounting environment in which these sectors have been operating for several years. It is then a matter of examining the reforms (Basel 3, Solvency 2, IFRS, etc.) conducive to the reorientation of available liquidity towards green financing.