Electricity market organization and carbon neutrality in 2050: do economists have the solution?

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

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