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Socio-Economic Challenges and Opportunities of the Energy Transition

Project description

Powering an efficient and fair energy future

The shift away from fossil fuels raises tough questions about how electricity markets should be designed to accommodate renewables and what happens to a town when a coal power plant closes. The ERC-funded ENERGY-IN-TRANSITION project seeks practical answers by focusing on the real-world dimensions of the green transition. It will examine a wide range of issues – from the potential role of green hydrogen to the local impacts of rooftop solar – using surveys and economic simulations to assess how these changes affect households and communities. The goal is to provide policymakers with a clear road map for ensuring that the move to clean energy is both efficient and fair.

Objective

ENERGY-IN-TRANSITION will push the frontier in energy and environmental economics by addressing and quantifying novel socioeconomic challenges and opportunities that arise as the Energy Transition moves forward.
Firstly, there is an urgent need to design new Energy Transition policies while re-designing existing ones. In particular, the prospect that Green Hydrogen might help reduce our dependency on fossil fuels has accelerated the need to define its regulation. Likewise, the recent energy crisis has triggered the debate about the re-design of electricity markets. However, there is no academic research guiding these fundamental policy changes. ENERGY-IN-TRANSITION will pioneer state-of-the-art research on Green Hydrogen regulation and electricity market design through theoretical, empirical, and simulation analyses. Secondly, it is paramount to assess and address the distributional consequences of Energy Transition policies (across regions, workers, and households). In particular, I will delve into the local socioeconomic impacts of the phase-out of coal plants and the phase-in of renewables. While existing research has analyzed the global effects of this structural change, evidence of the local effects is scant. Local opposition against renewables, which has become a major obstacle to their deployment, testifies to the relevance of the local effects. ENERGY-IN-TRANSITION will use recent advances in survey design to provide novel evidence on the local opposition toward renewables while contributing to identifying effective solutions to curb it. Moreover, I will quantify the distributional consequences of rooftop solar policies across households and investigate the under-studied possibility of re-designing them to mitigate their adverse effects.
Academics will benefit from the discovery of new methodological approaches to analyze the Energy Transition, while policymakers will gain insight into the solutions for the most compelling socio-economic challenges ahead.

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Keywords

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Programme(s)

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Topic(s)

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Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

HORIZON-ERC - HORIZON ERC Grants

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Call for proposal

Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.

(opens in new window) ERC-2023-ADG

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Host institution

FUNDACION CENTRO DE ESTUDIOS MONETARIOS Y FINANCIEROS
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 2 499 440,00
Address
CASADO DEL ALISAL 5
28014 Madrid
Spain

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SME

The organization defined itself as SME (small and medium-sized enterprise) at the time the Grant Agreement was signed.

Yes
Region
Comunidad de Madrid Comunidad de Madrid Madrid
Activity type
Research Organisations
Links
Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

€ 2 499 440,00

Beneficiaries (1)

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