Electricity Market Organization and Carbon Neutrality by 2050: Do Economists Have the Answer?

In the early 2000s, electricity markets in Europe were opened up to competition. More than twenty years later, prices have skyrocketed, with extreme volatility and a complete lack of long-term visibility. This situation calls for a rethinking of market organization, centered on one key question: how should 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 School of Economics.