Environmental Economics

Based on standard bibliometric methods,  TSE is first European research center in environmental economics. In particular, it is much involved in the public debate related to climate change . The highly reputed researchers in the field have published important papers in the best scientific journals. This scientific output has been used to contribute to the shaping of  public policies, either at the international level (Conference of Copenhagen), and at the national level (carbon tax,  choice of the discount rate to evaluate environmental policies,…).  In preparing the international negotiation in Copenhagen in December 2009, the French government has based its position on a report to the French Council of Economic Advisors (CAE)  by Jean Tirole  on the economics of climate change. In 2008, Jean Tirole had already published a paper in the Rivista de politica economica on "Some economics of global warning".

Previously, several TSE researchers have also contributed to the Report requested by the Ministry of ecology in preparation of  the national convention called the "Grenelle de l'environnement" in  2007.

Two areas of research pursued by TSE researchers in this field should be mentioned. First, they contribute to the promotion of a clever use of cost-benefit analysis in the determination of the best strategy to fight climate change. Many of the existing green technologies are still not mature enough to recommend their large scaled implementation, given their high cost compared to the social benefits that they generate. In addition to these normative analyses, we pursue in parallel a wide spectrum of researches on the best policy instruments to efficiently decentralize the myriad of acts in favour of the environment: taxes, permits, socially responsible funds,  norms, ecological labels,…  Fighting climate change is a noble aim, but it could destroy rather than create social value if one does not organize our society efficiently in the face of this peril.