Organization of electricity markets and carbon neutrality by 2050: do economists have the solution?

In the early 2000s, electricity markets opened up to competition in Europe. More than twenty years later, prices are skyrocketing, with extreme volatility and a total lack of long-term visibility. This situation requires a rethinking of market organization, with one central question: how can electricity markets be structured to send the right long-term signals, protect economic actors, and meet the goals of carbon neutrality by 2050? Do economists have the solution?

By François Mirabel, Professor and Dean of the Faculty of Economics.