“Greening transport: IS Carbon pricing sufficient?” by ACHIM I. CZERNY

Professor Achim I. Czerny is the Vice President of the International Transportation Economics Association (ITEA), a member of the Executive Committee of the European Aviation Conference Institute (EACI), Executive Committee member of the Air Transportation Research Association (ATRS), and Chairman of the German Aviation Research Society (GARS). He is also in the editorial boards of Economics of Transportation, Italian Economic Journal, Journal of Shipping and Trade, Research in Transportation Economics, Journal of the Air Transport Research Society.

During this webinar, he will deliver an insightful presentation titled: “Greening transport: is carbon pricing sufficient?”

In transport, greenhouse gas emissions can be reduced in many ways. One is by improving fuel efficiency by, for instance, modernizing the fleet. This is a theoretical study analyzing the greening incentives created by carbon taxes. The model involves a two-stage game. In the first stage, firms invest in green technology. In the second stage, they compete in prices à la Bertrand. He finds with his colleagues that green taxes are less effective than one might expect in incentivizing the environmental transition. This is because firms have incentives to strategically underinvest in green technology in the first stage in an attempt to soften competition in the second, pricing stage. They further show that strategic effects can be more relevant for low-cost competitors compared their high-cost rivals and that high-cost rivals may extend their output as a result of the low-cost rival’s strategic reduction in investments.

His presentation will be followed by a discussion with Marc Ivaldi, Professor in economics at the Toulouse School of Economics.

To attend this event, please register here: https://isae-supaero-fr.zoom.us/webinar/register/WN_W65iDnKdTquz6pCAjgVulw