Analysis of a hydrogen-based transport system and the role of public policy in the transition to a decarbonised economy. ; Choix de politiques sectorielles pour la décarbonisation de l'économie. Application au cas de l'hydrogène pour le secteur du transport

Abstract

What economic and policy framework would foster a transition in the European transport sector from fossil fuels to hydrogen in the long term (2030-50)? This research combines empirical and theoretical approaches and aims to answers the following questions:1.How to design appropriate policy instruments to solve inefficiencies in hydrogen mobility deployment?2.How to define abatement cost and an optimal launching date in the presence of learning-by-doing (LBD)?3.How to define an optimal deployment trajectory in presence of LBD and convexity in investment costs?The paper 'Transition Towards a Hydrogen-Based Passenger Car Transport: Comparative Policy Analysis' draws a cross-country comparison between policy instruments that support the deployment of Fuel Cell Electric Vehicle (FCEV). The existing policy framework in favour of FCEV and hydrogen infrastructure deployment is analysed. A set of complementary ex-post policy efficiency indicators is developed and calculated to rank the most active countries, supporters of FCEV. Denmark and Japan emerge as the best providers of favourable conditions for the hydrogen mobility deployment: local authorities put in place price-based incentives (such as subsidies and tax exemptions) making FCEV more financially attractive than its gasoline substitute, and coordinate ramping-up of their hydrogen infrastructure nationally.The paper 'Defining the Abatement Cost in Presence of Learning-by-doing: Application to the Fuel Cell Electric Vehicle' models the transition of the transport sector from a pollutant state to a clean one. A partial equilibrium model is developed for a car sector of a constant size. In this model the objective of the social planner is to minimize the cost of phasing out a stock of polluting cars from the market over time. The cost includes the private cost of green cars production, which are subject to LBD, and the social cost of carbon, which has an exogenous upward trend. During the transition, the equalization of marginal costs takes into account the fact ...