FSR Climate Annual Conference – 10^th edition

The Climate Area of the FSR is pleased to announce its 10^th Annual Conference on the Economic Assessment of European Climate Policies to take place at the European University Institute in Florence on Thursday 28 and Friday 29 November 2024.

The programme conference accessible here covers some of the main climate policies at the EU and national and subnational levels. It includes a keynote speech, a policy session, parallel sessions, and plenary speeches focusing on carbon pricing and energy transition.

Simone Borghesi, Director of the FSR Climate, Deputy Rector for International Relationships at the University of Siena and President of the European Association of Environmental and Resource Economists (EAERE), will chair the conference.

• Keynote Lecture: Maria Loureiro (University of Santiago de Compostela, Spain)
• Guest speakers: Xavier Labandeira (University of Vigo, Spain) and Michael Pahle (PIK Potsdam, Germany)
• Policy session:
  • Frank Siebern-Thomas (DG Employment, European Commission)
  • Francesca Lotti (Bank of Italy)
  • Aldo Ravazzi (Ministry of the Environment & LUISS, Italy)

Conference Scientific Committee 

Valentina Bosetti (Bocconi University, FEEM, Italy), Marco Casari (University of Bologna, Italy), Antoine Dechezleprêtre (OECD), Massimo Filippini (Università della Svizzera Italiana and ETH Zurich, Switzerland), Matthieu Glachant (Ecole des mines de Paris, France), Ulrich Wagner (University of Mannheim, Germany).

Fees

• Student (presenting a paper): 280 euro
• Speaker (presenting a paper): 430 euro
• Participant (not presenting): 520 euro

The fee includes two lunches, a social dinner, and coffee breaks.

Presentations

Keynote: Climate Change and Extreme Events: A Tale of Social Amplification of Risks  

• Maria Loureiro | University of Santiago de Compostela

Guest lecture: Towards a Just Transition: The Role of Fiscal Policies  

• Xavier Labandeira | University of Vigo and ECOBAS [Presentation] 

Guest lecture: Is the EU ETS cap (still) credible, and what will determine credibility going forward?  

• Michael Pahle | Potsdam Institute for Climate Impact Research [Presentation] 

Session 1a – Energy efficiency  

• Moderation: Alessia Casamassima | EUI  

1. Energy Efficiency and Consumption Patterns: Insights from EPCs and Smartmeters in the French residential sector, Edouard Civel | Square Research Center and Climate Economics Chair, Paris Dauphine-PSL University 
2. The Effect of Energy Efficiency relabelling on Purchase Decisions: Quasi-experimental evidence from the EU, Justus Böning | KU Leuven [Presentation]
3. The Effect of Energy Efficiency Obligations on Residential Energy Use: Empirical Evidence from France, Matthieu Glachant | CERNA, Mines Paris – PSL [Presentation]

Session 1b – Welfare and distributional impacts  

• Moderation: Mira Manini Tiwari | University of Siena & EUI 

1. Lost in Aggregation: The Local Environmental and Welfare Effects of Large Industrial Shutdowns, Philipp Bothe | Paris School of Economics & World Inequality Lab [Presentation]
2. Distributive justice concerns when combating air pollution: the joint modelling of attitudes and preferences, Anna Bartczak | University of Warsaw [Presentation]
3. Bridging the Gap: A Novel M2/LIHC Hybrid Indicator Unveils Energy Poverty Dynamics – case study of the Czech Republic, Matej Opatrný | Charles University Environment Centre [Presentation]

Session 2a – Carbon pricing and policy interactions  

• Moderation: Marie Raude | EUI, Paris Nanterre University & Climate Economics Chair  

1. How effective is emissions pricing? The role of firm-product-level adjustment, Karin Mayr-Dorn | Johannes Kepler University Linz [Presentation]
2. Emission Trading and Overlapping Environmental Support: Installation-level Evidence from the EU ETS, Leonard Stimpfle | University of Gent [Presentation]
3. Environmental Policy Stringency, Policy interaction and Greenhouse gas emissions: an approach by sector, Coline Metta-Versmessen | LEDa Paris Dauphine University, Chaire Economie du Climat & EDF [Presentation]

Session 2b –Agriculture and ecosystems  

• Moderation: Lisa Frollichi | University of Urbino  

1. Agricultural policies to mitigate GHG emissions: a comparative study, Irene Maccarone | University of Foggia [Presentation]
2. Payments for Ecosystem Services Programs and Climate Change Adaptation in Agriculture, Young Kim | University of Oxford 
3. Mitigating Farmland Biodiversity Loss – A Bio-Economic Model of Land Consolidation and Pesticide Use, Elia Moretti | Institut Polytechnique de Paris [Presentation]

Session 3a – Energy prices and demand  

• Moderation: Albert Ferrari | EUI  

1. Derisking Electricity Prices For Decarbonisation: A novel perspective on market incompleteness through irreversibility, Jules Welgryn | Climate Economics Chair, Universite Paris Nanterre, ADEME 
2. Temperature Sensitivity of Residential Electricity Demand on the Global Scale: A Bayesian Partial Pooling Model, Peer Lasse Hinrichsen | University of Kiel 
3. Who saved energy why? Analyzing heterogeneous energy demand responses in the energy price crisis, Sophie M. Behr | DIW Berlin

Session 3b – Sustainable development and public perceptions  

• Moderation: Alessia Casamassima | EUI  

1. Is tax aversion contagious? A survey experiment on combining energy taxes and subsidies, Sofie Waage Skieflo | CICERO Center for International Climate Research [Presentation]
2. Net-Zero Target and Public Finances: A Projection Framework for Switzerland, Benjamin Lerch | Swiss Federal Department of Finance [Presentation]
3. More Than Just Carbon: The Socioeconomic Co-Benefits of Large-Scale Tree Planting, Lorenzo Sileci | LSE [Presentation]

Session 4a – Emissions trading systems  

• Moderation: Marie Raude | EUI, Paris Nanterre University & Climate Economics Chair  

1. Mind the emission gap for firms in the EU ETS program, Luca Taschini | University of Edinburgh Business School [Presentation]
2. Emissions trading with supply adjustment mechanism and market power, Tom Brinker | University of Cologne
3. Being a New Entrant or an Incumbent Matters – Emissions Abatement and the EU ETS, Antonia Pacelli | Toulouse School of Economics, INRAE [Presentation]

Session 4b – International dimensions of climate policy  

• Moderation: Fabio Santeramo | EUI & University of Foggia  

1. Energy Intensity and Structural Changes: Does Offshoring Matter?, Francesco Jacopo Pintus | Foscari University of Venice and Interuniversity Research Centre on Public Economics (CRIEP) [Presentation]
2. Trade effects of environmental technical measures: Evidence from OECD and major non-OECD economies, Emilia Lamonaca | University of Foggia [Presentation]
3. Fair burden-sharing for climate change mitigation: an axiomatic approach, Emma Jagu Schippers | Université Paris-Saclay

Session 5a – Carbon pricing and climate risks  

• Moderation: Ilaria Dibattista | EUI & University of Siena  

1. Net Zero: Distributional Effects and the Role of Fiscal Policy in the Green Transition, Alessandro Sardone | Halle Institute for Economic Research (IWH) [Presentation]
2. Climate disclosure and risk premium in the European bond market, Matteo Mazzarano | Università di Siena, CMCC [Presentation]
3. The performance evaluation of green budgeting in European Union member states. Public climate policy implications, Kamilla Marchewka-Bartkowiak | Poznań University of Economics and Business

Session 5b – Innovation and investment  

• Moderation: Lea Heinrich | EUI  

1. Environmentally Responsible Demand: Irresponsible Lobbying, Sonja Dobkowitz | DIW Berlin [Presentation]
2. The More the Merrier? The Role of Green Research and Development Subsidies under Different Environmental Policies, Leonie Meissner | Kiel Institute for the World Economy [Presentation]
3. The Impact of Sustainable Finance Literacy on Investment Decisions, Tobias Wekhof | ETH Zürich and University of Zürich [Presentation]

The event is organised by the EUI with the support of EAERE.

Past editions of the FSR Annual Climate Conference

• FSR Climate Annual Conference 2023
• FSR Climate Annual Conference 2022
• FSR Climate Annual Conference 2021
• FSR Climate Annual Conference 2020
• FSR Climate Annual Conference 2019
• FSR Climate Annual Conference 2018
• FSR Climate Annual Conference 2017
• FSR Climate Annual Conference 2016
• FSR Climate Annual Conference 2015

Join us for the second instalment of the FSR Insights series’ quarterly theme “Securing Europe’s Energy Future”

Kian Mintz-Woo from University College Cork will present insights from his co-authored paper, which explores a proposed justice framework to address the complex implications of climate change and decarbonization.

The discussion will address key aspects such as the distribution of responsibilities among nations, the role of ethical considerations in policy-making, and practical approaches to implementing fair climate actions. The study emphasizes the need for deeper integration of these principles into climate scenario research to better inform policy-making and ensure fairer outcomes in tackling global climate challenges. Dr. Mintz-Woo will provide concrete examples to illustrate how fairness can be incorporated into climate policies to ensure both effectiveness and equity.

Philippe Delacote from INRAE, Amaia Palencia Esteban from LSE, and Jacopo Cammeo from FSR will provide their insights and critiques, enriching the conversation with diverse perspectives. Moderated by Marzia Sesini and Nicolò Rossetto from FSR, the session will invite audience participation, encouraging an engaging and thought-provoking dialogue.

Keynote Speaker

Kian Mintz-Woo | University College Cork

Discussants

Philippe Delacote | INRAE

Jacopo Cammeo | FSR

Amaia Palencia-Esteban | LSE

Moderators

Marzia Sesini | FSR

Nicolò Rossetto | FSR

The participation of some researchers in this event is co-funded by the SPES project financed by the Horizon Europe Programme of the European Commission, Grant agreement ID: 101094551

Securing Europe’s Energy Future: Join us for the first instalment of this quarterly theme in the FSR Insights series

Sebastian Zwickl-Bernhard from TU Wien will share his expert perspective on the evolving dynamics of LNG trade and the geopolitical challenges we anticipate by 2040. Drawing from his recent study, co-authored with Anne Neumann, he will highlight key findings on market integration, supply chain disruptions, and strategic shifts among major LNG players.

The discussion will address crucial aspects such as the influence of emerging markets, technological advancements, and policy responses to geopolitical tensions. Through concrete examples, Dr. Zwickl-Bernhard will illustrate how factors such as regional conflicts, technological breakthroughs in LNG extraction and transportation, and shifts in regulatory policies shape LNG trade flows, highlighting their direct implications for global energy security.

Experts Anna Cretì from Université Paris Dauphine, Anouk Honorè from OIES, and James Kneebone from FSR will provide their insights and critiques on the presentation. Moderated by Marzia Sesini and Nicolò Rossetto from FSR, the session will invite audience participation, encouraging a dynamic and engaging dialogue.

Keynote speaker

Sebastian Zwickl-Bernhard | TU Wien

Discussants

Anna Cretì | Université Paris Dauphine

Anouk Honorè | OIES

James Kneebone | FSR

Moderators

Marzia Sesini | FSR

Nicolò Rossetto  | FSR

FSR Regulatory Policy Workshop Series 2024-2025

This workshop is by invitation only

Sustainability assessment

The FSR assesses the sustainability and carbon footprint of all its Workshops of the Regulatory Policy Workshop Series. This Workshop is run mainly ‘in presence’, with some exceptions for participation through internet-based remote connection. It is expected that most participants will join the Workshop in Florence to take advantage of the opportunity for more effective interaction and discussion. Those participants joining the event in Florence will be encouraged to offset any carbon emissions related to their air travel. It is considered that, in this way, a suitable balance is achieved between the effectiveness of the policy dialogue and the net carbon footprint of the event.

The Policy Advisory Council discusses the most topical regulatory and policy issues and debates and the relevance and robustness of the latest FSR research findings. The meeting gathers experts from the European Commission, the EU Agency for the Cooperation of Energy Regulators (ACER), the FSR Energy Star and Major Donors and invited renowned academics

Exploring energy regulation in Africa: political Economy, emerging technologies, and regional collaboration

This FRS Talks aims to delve into the intricate political economy governing energy regulation across Africa, as presented in the book ‘Energy Regulation in Africa’ by Dr. Ishmael Ackah and Dr. Charly Gatete. The discussion will cover the diverse regulatory frameworks, emerging technologies, climate change issues, regional energy markets, and the role of regulators in promoting gender mainstreaming in the energy sector.

Speakers

Dr. Ishmael Ackah | Executive Secretary of Ghana’s Public Utilities Regulatory Commission (PURC)

Dr. Charly Gatete | Applied Researcher at the African School of Regulation (ASR),

Invited Discussant
Louise Mathu | Consultant, ASR

Co-Hosts

Carol Awuor Ofafa | Research Associate, ASR – African School of Regulation
Prof. Lucila Almeida | Part-time Professor, EUI/RSCAS/FSR
Swetha Ravi Kumar | Executive Director, FSR Global

The event is co-hosted by Carol Ofafa, a Research Associate at the African School of Regulation (ASR), Prof. Lucila de Almeida, a Part-time Professor at EUI/RSCAS/FSR and Swetha Ravi Kumar the Executive Director of FSR Global based in India. Their roles involve facilitating the discussion, moderating the session, and ensuring the smooth progression of the event. Through their expertise and affiliations with leading academic institutions, they contribute to the intellectual depth and diversity of perspectives within the dialogue.

The European electricity market reform represents a significant turning point as it aims to adapt power markets for decarbonisation. Together with Thomas-Olivier Leautier and Fabien Roques, course directors of the Executive Course to Master Electricity Markets, we will analyse some of the key issues that will shape wholesale electricity market evolution in the years to come. In particular, this event will delve into the following topics:

• The role of planning processes and new methodologies to analyse the needs for flexibility, adequacy, and network development
• Best practices for the design of Contracts for Difference (CfDs)
• State aid and competition issues associated with long-term contracts

This online event is a spin-off of the topics that will be further analysed in the Executive Course to Master Electricity Markets that will take place in Florence on 14-15 October 2024, providing a deeper understanding of the upcoming changes in the European electricity market.

EAERE Policy Outreach Committee, policy session at the 29th EAERE Annual Conference in Leuven (Belgium), 3 July 2024 

The EU’s Just Transition Fund (JTF) serves as a financial instrument to assist energy-intensive and mining regions most impacted by the adverse effects of the energy transition. Its goal is also to alleviate the unequal distribution of costs, ensuring strategic support for those facing the most significant challenges in the transition. The JTF can play a crucial role in balancing the economic impacts of the transition, preventing job destruction in affected regions and ensuring reskilling for new sectors.

The JTF responds to the fact that the transition has a direct impact on society and individuals’ lives. Historical instances of significant restructuring have demonstrated that entire regions may reverse into poverty without adequate support. If not handled properly, these consequences may result in considerable regional inequality. Moreover, there is still a lack of understanding of the actual functioning and impacts of occupational and sectorial reallocation, and the definition of indicators to monitor these initiatives.

The criticalities of the JTF prompt us to questions that we intend to address in this session:

1. How do the Just Transition Mechanism (JTM) and JTF ensure that the transition is inclusive and socially just for workers and communities affected by the shift away from fossil fuels?
2. How does the JTM address the social and economic challenges faced by regions heavily dependent on fossil fuel industries or other environmentally harmful activities? What are the strengths and weaknesses of the JTM?
3. Which indicators may be important to monitor the development of JTM?
4. How do TTJPs interact with existing labour market policies and initiatives at the regional or national levels?

The session organized by the EAERE POC, in collaboration with the European University Institute under the ongoing CAPABLE project, intends to discuss the challenges posed by the possible reforms described above. In line with the aim of the EAERE POC (i.e. providing advice and support to EU policymakers and institutions in designing policy interventions), particular attention will be devoted to the most suitable policies that should be implemented to make these reforms feasible and effective.

The event intends to continue the series of policy dialogues carried out by the Policy Outreach Committee since 2019 in collaboration with the European University Institute at the State of the Union in Florence and at the past EAERE Annual Conferences.

Organisers:

• Xavier Labandeira, University of Vigo
• Alessia Casamassima, EUI
• Simone Borghesi, EUI, University of Siena

Chairs:

• Ilaria Dibattista, EUI, University of Siena
• Xavier Labandeira, University of Vigo

Invited speakers:

• Tadhg O’Briain, DG Energy, European Commission
• Iva Zvěřinová,Charles University
• Aldo Ravazzi, OECD-EPOC and IFCMA Italian Coordinator, Italian Ministry of Environment & Energy Security
• Jos Delbeke, School of Transnational Governance, European University Institute, KU Leuven

This event is organised under the framework of the project CAPABLE, which has received funding from the European Union’s Horizon Europe research and innovation programme under grant agreement No 101056891.

FSR Insights series on “Developments in the European energy and climate policy” with FSR part-time professor Lena Kitzing

Contracts for Difference (CfDs) have been acknowledged by EU legislation as a fundamental tool to support the rapid uptake of renewable energy sources necessary to achieve the 2030 energy and climate targets. Discussions on how to properly design those contracts and how their massive use will impact the functioning of electricity markets have been common in the past few years, sometimes without a consensus emerging among researchers and policymakers.

In this new instalment of the FSR Insights series on “Developments in the European energy and climate policy”, FSR part-time professor Lena Kitzing will provide her view on those discussions and illustrate the key messages of a recent FSR technical report, where she and her co-authors highlight how CfDs can come in many shapes and how hard it is to generalise about them. By referring to some concrete examples, Prof. Kitzing will show how the selection of alternative design options can lead to different results and that those results depend also on the specific context in which such a CfD is applied.

Sofia Nicolai and Jörn Richstein will discuss Prof. Kitzing’s contribution before opening the floor to answer questions from the audience.

Keynote speaker

Lena Kitzing | FSR and DTU

Discussants

Sofia Nicolai | FSR

Jörn Richstein | Aurora Energy Research

Moderators

Nicolò Rossetto | FSR

With the winding down of the current Commission, thoughts are moving to ‘what should be the priorities for the next Commission’s mandate?’

This question is coming at an important time, where many observers argue that the EU’s current approach is ‘under fire’ and that the ‘Fit for 55’ package has placed challenges for EU industry that threaten our competitiveness. Indeed, the Commission has already suggested that the ‘Industrial Green Deal’ will be a forthcoming priority.

A Panel of two former Energy Commissioners- Miguel Arias Cañete and Andris Piebalgs– and two former Deputy Directors-General of Energy of the Commission – Christopher Jones and Klaus-Dieter Borchardt – will debate this question, and try to suggest some priorities.

Catharina Sikow-Magny, the DG ENER Director for Green Transition and Energy System Integration of the European Commission will act as moderator, and ask questions, including those from the audience.

Questions to be addressed by the Panel will include:

• How should the next Commission/Co-legislators approach the EU’s 2040 GHG target? What are the consequences for EU citizens and industry of this?
• What new legislative initiatives should be taken to make sure that the EU meets 2040 target (and indeed the 2030 one)?
• Do we already need a 2040 RES target?
• How should the ETS and CBAM be revised during the next Commission?
• What should the EU do to ensure the competitiveness of its industry? What could the ‘Green Industrial Deal’ be?
•  Do you expect the EU’s GHG, RES and energy efficiency 2030 targets to be met? If not which ones, and what should be done to put us back on course?
•  What next for buildings?
• Is the EU’s hydrogen policy ‘fit for purpose’? What needs to be done?
• The Carbon Management Strategy now needs to be implemented – what should the Commission propose in concrete terms to kick-start CCUS?
• Should the EU ‘roll-back’ its technology specific target-driven approach to energy policy.? If so, why and how?
• Should the EU put a price on methane emissions?

Join us for what will surely be an entertaining and informative debate!

This online debate organized in the context of the EU-funded project LNGnet, will discuss how to include emissions intensity information in LNG Agreements

The importance of Liquefied Natural Gas (LNG) in Europe’s overall energy mix has considerably increased in the last three years: since the Russian aggression to Ukraine in February 2022 and its impact on EU gas supply strategy, LNG imports to Europe have grown and LNG has proven to be a valid and reliable instrument to quickly compensate for the sudden shortage of Russian gas via pipeline.

LNG is likely to remain as part of the EU energy mix for some decades, particularly for its important contribution to energy stability and security of supply. At the same time, Europe cannot forget its climate targets and commitments. Upstream and import regulations are going to evolve in the next few years, as to facilitate the achievement of decarbonisation commitments; in parallel, technological pathways are going to evolve, affecting market conditions and global players’ behaviours and drivers.

Therefore, it’s reasonable to think that, going forward, in LNG contracts (Sales and Purchase Agreements, SPAs) a differentiation of the product depending on its carbon or emission intensity will automatically emerge: the more emissions associated with the production of feed-gas or its liquefaction and transport, the higher the costs of both its production and use in the destination market.

How should this information be tackled? What are the possible challenges in making it compatible or even standardized as to facilitate trading in a global market like LNG?

While not addressing the question of measurement, reporting and verification of said emission intensity values, this workshop will debate how carbon intensity can be taken into account and translated into LNG contracts, how it may be structured and which information would need to be considered for the relevant provisions.

Programme

Introduction to the Debate and Opening Presentations

14.00 – 14.05 Introduction to the Debate

Ilaria Conti | FSR

14.05 – 14.20 Specialised WG5: LNG Trading Arrangements in the Context of the Energy Transition

Gunnar Steck | LNGnet Team Leader

14.20 – 14.30 EU Energy Prospects

Adam Szolyak | Policy Officer, DG ENER

Panel Discussion: Introductory Remarks, Polls and Comments

Moderator: Alberto Pototschnig | FSR

14.30 – 14.50 Introductory remarks from the panellists

Luis Ignacio Parada | President of Gas LNG Europe, Gas Infrastructure Europe

Kim Talus | Professor of Energy Law at UEF Law School, University of Helsinki

Andreas Guth | Policy Director, Eurogas

Michaela Duve | Chair Legal Committee, Energy Traders Europe

14.50 – 14.55 Polls

14.55 – 15.20 Comments on the polls outcome and Q&A from the audience Panellists

15.20 – 15.30 Concluding remarks

Ilaria Conti | Florence School of Regulation

Alberto Pototschnig | Florence School of Regulation

The 25th Florence Rail forum aims at discussing the current situation of competition across the Single European Railway Area

Introduction

The Recast Directive opens the Single European Railway Area to competition.Competition is gradually emerging across the EU, but there are obvious asymmetries across Member States in particular in the passenger commercial segment, which includes high-speed services (see RMMS 2023, Figure 79). While some markets have vibrant competition in high-speed services, others have competition for the market in public service obligation services, and yet in some markets no significant evolution has taken place.

Barriers to entry to railway markets are particularly relevant. Rail infrastructure is a natural monopoly. Traditionally, infrastructure managers were vertically integrated and enjoyed exclusive right for the provision of downstream rail services (freight, passenger, etc.). The elimination of such exclusive rights enables competition in (commercial services) or for the market (PSO services). But barriers to entry can deter newcomers. Access to infrastructure is the key factor, as in the rest of network industries, as well as access to service facilities.

The Recast Directive aims at reducing the barriers to entry related to access to infrastructure: rules on capacity allocation, traffic management, temporary capacity restrictions, etc. Furthermore, it defines the basic principle of non-discrimination by infrastructure managers in favour of the vertically integrated railway undertaking, when vertical integration exists, as well as specific rules for the governance of vertically integrated undertakings.

Article 63 of the Recast Directive requires the Commission to evaluate the impact of the Directive by the end of 2024, and in particular to draft a report assessing whether discriminatory practices or other types of distortion of competition persist in relation to infrastructure managers which are part of a vertically integrated undertaking, and in particular evaluate the development of high-speed rail services and assess the existence of discriminatory practices regarding access to high-speed lines.

The 25th Florence Rail forum aims at discussing the current situation of competition across the Single European Railway Area:

• Are there discriminatory practices or other types of distortions of competition in relation to vertically integrated infrastructure managers?
• What is the impact on the market?
• How is competition evolving in high-speed?
• Has vertical integration impacted the evolution of competition?
• How are the rules to govern vertically integrated infrastructure managers implemented? Are they effective?
• What new rules could be introduced?

Access to the FSR Policy Brief  ‘Evaluating the Recast Directive’