BRECHET Thierry

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In this paper we analyze the effects of an environmental policy on the diffusion of a clean technology in an economy where firms compete on the output market. We show that the share of adopting firms is non-monotonic with the stringency of the environmental policy, and that the adoption of the clean technology may well increase the pollution level. We also compare the effects of an emission tax and tradable pollution permits on welfare, technology adoption, and pollution level. We show that, depending on the stringency of the policy, either the tax or the permits can yield a higher degree of technology adoption and pollution. Actually, technology adoption and environmental quality may be conflicting in discriminating among the instruments.

This book, for which Belgian, French and Canadian researchers have collaborated, first addresses sustainable development concepts in economics before applying them, in a second step, to regional issues. Sustainability assessment methods, life cycle analysis and the study of sustainable development as a technical innovation problem allow us to better understand and evaluate the impact of our actions in terms of sustainability. The ensuing regional implementation, whether theoretical or empirical, deals, among other things, with the impact of airport noise pollution on local residents, interactions between economic systems and ecosystem services for fish nurseries, or the calculation of indicators and measures of well-being based on regional statistics.

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We analyze the effects of an environmental policy on the diffusion of a clean technology. Compared to previous articles we consider that the polluting firms are competitors on the output market and we analyze the effects of the policy on the share of adopting firms in the economy. We show that this share is not monotonic with the stringency of the environmental policy. We also compare the effects of an emission tax and tradable pollution permits and we show that, depending again on the stringency of the policy, either the tax or the permits yields a higher degree of technology adoption.

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In this paper we study the dynamic general equilibrium path of an economy and the associated optimal growth path in a two-sector overlapping generations model with a stock pollutant. A sector (power generation) is polluting, and the other (final good) is not. Pollution is regulated by tradable emission permits. The issue is to see whether the optimal growth path can be replicated in equilibrium with pollution permits, given that some permits must be issued free of charge for the sake of political acceptability. We first analyze the many adverse impacts of free allowances, and then we propose a policy rule that allows optimality and acceptability to be reconciled.

We develop an overlapping-generations model of growth and the environment in relation to public policy on education. Beyond the traditional mechanisms through which knowledge, growth, and the environment interplay, we stress the role played by education in environmental awareness. Assuming first that environmental awareness is constant, we show the existence of a balanced-growth path (BGP) along which environmental quality increases continually. Then, if education enhances environmental awareness, the equilibrium properties are modified: the economy can reach a steady state or converge to an asymptotic BGP. Therefore, education does not necessarily promote sustained and sustainable growth.

Climate change has become a major concern. The purpose of this thesis is to shed some light on current environmental issues. First, we question the effectiveness of environmental policies. Secondly, we are interested in how the well-being of households can be affected by environmental degradation.France has committed itself to reducing greenhouse gas emissions and energy consumption in the residential sector. In the first chapter, we study the determinants of residential energy consumption in order to identify the most effective policies to improve energy efficiency in this sector. We show that the challenge is to encourage households to undertake renovation work. This is the objective of policies such as the sustainable development tax credit or subsidies. In a second chapter, we evaluate the impact of these measures using a simulation model. The results show that while current policies are effective, they are not sufficient to achieve the set objectives. Finally, we focus in a third chapter on the impact of the tax credit on household behavior. This measure provides little incentive for households to carry out renovations, and this can be explained in part by a deadweight loss effect. Emerging countries are the most exposed to climate disasters. In a fourth chapter, we look at how environmental degradation affects households. Deforestation increases the scarcity of natural resources such as wood. This increases the likelihood that women will be involved in the collection of natural resources and thereby decreases their participation in the labor market.

In France, studies on the determinants of energy-saving investments in the residential sector are still relatively rare, even though this sector represents an important source of energy savings. In this thesis, the objective is to isolate the determinants of energy efficiency investments in the residential sector in order to provide recommendations for public policies. We wish to study the effect of current and potential policies that aim to stimulate the adoption of energy saving equipment. This thesis is divided into four chapters. In the first chapter, the main objective is to analyze household renovation expenditures by distinguishing between energy efficiency work (insulation and equipment replacement) and repair work using an econometric approach. In a second chapter, we try to understand the decision to invest in energy efficiency when there are diverging incentives (the case of the owner/tenant). In a third chapter, we study the decision to invest in energy saving equipment in a general equilibrium taking into account irreversibility and uncertainty on energy prices and income returns. Finally, the fourth chapter evaluates, using a simulation model, the effect of public policies on the investment decision. We model energy consumption and greenhouse gas emissions, the decision to invest in energy efficiency retrofits, and the dynamics of the housing stock.

The purpose of this thesis is to design an applied model that ensures a maximum adequacy with the problem of reducing greenhouse gas emissions and the economic policy instruments envisaged in the framework of the Kyoto Protocol, essentially tradable emission permits. This model shows that a system of permits would make it possible to reduce GHG emissions with significantly lower losses in terms of activity and well-being than in the case of a CO2/energy tax. The combination of permits with fiscal instruments is unable to generate welfare improvements, even if the negative impacts on the macroeconomy can be mitigated. One of the most effective strategies is to offset the extra cost of imposing emission allowances on firms by reducing their wage costs. only reductions targeted at low-wage workers can generate a double dividend in terms of employment. Finally, based on a bottom-up approach, new technologies were introduced into the model in order to test their contribution to the compliance with emission allowances and their influence on the permit market. The thesis focused on analyzing the mechanisms inherent to intra-temporal flexibility. It is likely that future explorations will focus on the analysis of inter-temporal flexibility, which requires the construction of a dynamic model, but also some assumptions or information on how the permit market works in reality. Finally, it would be interesting to introduce mechanisms of imperfect competition, notably in the functioning of the labor market, but also (and especially) in the permit market. Here again, additional information will be needed to know the practical rules of operation of this market.