Research
Publications
Adopting and diffusing hydrogen technology in air transport: An evolutionary game theory approach.
with Shangrong Chen, Estelle Malavolti, and Romain Mongeau. Energy Economics, vol. 125, n. 106864, September 2023.
Abstract:
This paper uses an evolutionary game theory approach to assess the diffusion of different hydrogen technologies in the air transport system. Our model is extended to consider uncertainty, as well as the impact of the “Flight Shame” movement and different policies such as subsidies or taxes. A sufficiently high initial percentage of hydrogen adopters is required for full adoption following the market social learning mechanism. This fixed internal point is determined by the benefits of switching technologies, the extra costs, and the ground handling fee. We complement our theoretical analysis with a well-calibrated simulation using industry data to study the diffusion of different hydrogen innovations. Without any government intervention, carbon neutrality at the 2050 Horizon is only feasible with the most disruptive technologies. Other intermediate technologies are not profitable enough to meet the Net Zero CO2 emissions goal.Presentations: 25th ATRS World Conference (Antwerp, 2022), 27th Annual EAERE Conference (Rimini, 2022), ITEA Annual Conference (Toulouse, 2022).
Prosumers: Grid vs. individual storage.
with Carole Haritchabalet. Energy Economics, January 2025.
Abstract:
We present a stylized microeconomic model to analyze solar panels and storage investment decisions of a representative consumer under either grid (credit regulation) or individual (price regulation) storage. We identify the conditions under which prosumers become storers. We show that solar technology must be more competitive under credit than price regulation for consumers to invest in storage. We calibrate our model using French data from 2023 and 2030 and consider batteries and fuel-cells as potential individual storage technologies. France’s current price regulation incentivizes investment in solar capacity, but not in storage. Conversely, credit regulation would immediately encourage energy storage. Looking ahead to 2030, both regulatory frameworks would incentivize energy storage. The distribution system operator prefers credit regulation, provided the regulator allows full energy recovery. Overall, energy storage enhances welfare under both regulatory frameworks.Presentations: 49th EARIE Conference (Vienna,2022), 38èmes Journées de Microéconomie Appliquée (Rennes, 2022).
Working Papers
A model of vertical restraints and labeling: the case of green hydrogen.
with Carole Haritchabalet. October 2023. (Draft available upon request)
-Previously circulated as: “Certification of low-carbon hydrogen in the transport market”.
Best Student Paper in Energy Economics, French Association for Energy Economics, 2020.
Abstract:
A label for green gases, such as green hydrogen (H2) and bio-methane, could allow retailers to exploit consumers' willingness to pay for environmental quality and ease their diffusion. The cost gap between green gases and their conventional counterparts raises concerns regarding the effectiveness of a label in markets characterized by a complex value chain such as road transportation. We build a stylized model of an H2-based road transport market to assess whether the market’s organization could be as efficient as a label policy in a setup where consumers have no direct information about production. With the label, producers prefer to exploit the double marginalization to the detriment of social welfare. However, this allows the high-quality producer to cover its fixed costs. Without the label, producers can use vertical restraints to convey quality information to consumers. The informational problem creates a trade-off between the intensity of competition (driven by perceived qualities) and cost efficiency. The implementation of an optimal label policy depends on the cost gap between qualities and on consumers’ expectations about the share of green H2 available in the market. Under the current cost gap, if consumers were to be informed about the current production landscape, it is possible that their beliefs would lean towards a relatively pessimistic view. In such a case, the label would be socially optimal. Additional policy instruments such as a carbon tax could decrease the cost gap, in such a case society would be better off without the label.Presentations: 13th Toulouse Conference on The Economics of Energy and Climate (Toulouse, 2022), 48th EARIE Conference (Bergen, 2021), 37èmes Journées de Microéconomie Appliquée (Annecy, 2021) ADRES Doctoral Conference (Strasbourg, 2021), FAEE Student Workshop (Paris, 2020), CATT Seminar (Pau, 2020).
Do airlines adopt sustainable aviation fuels under modal competition?
with Estelle Malavolti, Spetember 2024. Submitted. (Draft available upon request)
Abstract:
Reducing the level of carbon dioxide (CO2) emissions in air transport calls for policies supporting less polluting fuels. The International Civil Aviation Organization and the European Union have launched policies to support the adoption of sustainable aviation fuels (SAFs). Besides this, Schiphol, Heathrow, and airports from the Swedavia AB group are considering implementing a system of differentiated airport charges based on environmental performance. However, the use of discriminatory charges is forbidden under Article 15 of the Chicago Convention. Our paper studies the impact of authorizing differentiated charges in the context of intermodal competition. We find that with uniform tariffs, airlines have no incentive to use SAFs. Instead, if a regulator authorizes discriminatory aeronautical charges, airlines may switch to a SAF and kerosene blend. When the costs associated with using a blend are smaller than passengers’ disutility when not traveling with their preferred transportation mode, discriminatory charges increase air transportation's market share. Thus, using a blend may prevent losing passengers to the rail in the context of passengers' increasing environmental awareness.Presentations: 27th ATRS World Conference (Lisbon, 2024), 10th FAERE Conference (Montpellier, 2023), 50th EARIE Conference (Rome, 2023), 4th SOAR Symposia (Toulouse, 2023), PPH2 Seminar (Montpellier, 2023).
Work in Progress
Greening the Public Fleet: Evidence from California’s Clean Vehicle Rebate Program.
October 2023.
Abstract:
The Californian Clean Vehicle Rebate Project offers rebates for plug-in-hybrid electric (PHEVs) and zero-emissions vehicles (ZEVs) to private consumers as well as state agencies. One might wonder whether these rebates provide enough incentives for ZEVs public purchases, or if these public funds would be better allocated elsewhere. This paper exploits a change in the rebate allocation guidelines around 2016 using a Poisson pseudo-maximum likelihood regression with two-way fixed effects to investigate the relationship between rebates and government purchases. Unlike what could be expected, more generous rebates are negatively correlated with ZEVs public purchases. This counter-intuitive result might suggest that government agencies are insensitive to rebates. Conversely, we find that agencies in non-disadvantaged communities, that do not have access to the increased rebates, are the ones purchasing ZEVs. This suggests that California is still in the early stages of a transition to a greener public fleet. A new rebate allocation based on state agencies' financial resources and their fleet's level of emissions could facilitate the green transition of the state fleet.Presentations: ITEA Annual Conference (Leeds, 2024), ADRES Doctoral Conference (Paris, 2023), International Conference on Mobility Challenges (Paris, 2021), TREE Seminar (Pau, 2021).
What is the role of psychological factors in urban modal choice? Evidence from Toulouse Metropolis.
with Imane Hoummirat and Isabelle Laplace.
Abstract:
Multimodality appears as a solution to reduce congestion and air pollution in the context of urban areas with growing populations. Mobility as a Service tools can encourage further the adoption of multimodal transportation Docherty et al., 2018). Nevertheless, the effectiveness of MaaS tools in promoting multimodal trips depends on many factors such as socio-demographic and economic characteristics, psychological factors, and trip circumstances. We propose an econometric investigation of these factors using the last wave of the "Enquête Ménages Déplacements" from 2013 in Toulouse. Our analysis highlights the importance of geographical location in shaping transportation choices with important differences between residents and trips between and within Toulouse and its suburbs. Psychological factors, such as environmental concern, also positively influence multimodal trips, unlike habits.Presentations: ITEA Annual Conference (Leeds, 2024), M2S (Toulouse, 2023).
Coopetition: What is the optimal air-rail transportation mix?
with Shangrong Chen and Estelle Malavolti.
Presentations: 5th SOAR Symposia (Luxembourg, 2024).
Policy Work
Stratégie française sur l’énergie et le climate.
with Xavier Arnauld-de-Sartre, Pauline Lacassy, Florence Lachet-Touya, Jacques Le-Cacheux and Jérémy Pélé, Cahier d’acteurs n°36 UMR TREE, 2022.