Market regulation and design
Our objectives: Analyze governance, market systems, regulations, and their implications for moving our society toward carbon neutrality. Provide evidence-based scientific insights for the development of incentive tools that promote the dissemination of the technological, social, and behavioral changes necessary for the energy transition.
Energy markets face a need for massive investment to successfully transition to carbon neutrality. Governance frameworks must be adapted to secure this financing. However, for example, while the current organization of the electricity market in Europe makes it possible to remunerate the operation of existing production facilities, it seems unable to provide the right incentives to bring about the necessary long-term investments. Reforms to these market designs are therefore essential.
I-Tésé monitors and analyzes academic research and proposals from market players in order to anticipate possible developments and make recommendations.
These actions are carried out in several areas:
- Analysis of the global context and energy strategies to strengthen the strategic vision and better manage the risks of the energy transition.
- Carbon pricing/the mechanisms for producing this price and their impact on prices, competitiveness, sovereignty (CBAM), policy choices, and links with socio-economic aspects, the globalized market, and competitiveness.
- Regulatory and market tools to support investment in low-carbon technologies/PPAs, CFDs, carbon CFDs, regulation: relevant forms and fields of application.
- Energy prices (electricity): link between market organizations and the form of regulation chosen. How to manage conflicting injunctions (promoting electrification and encouraging investment). Role of geopolitical issues and international strategies.
- How can we encourage changes in consumer behavior? Revealing preferences to quantify and analyze changes in demand in the transport market by revealing consumer preferences.
These areas of research are addressed using scientific tools from different fields of economics in order to highlight the diversity of responses that can be observed to these issues.