European Center for Advanced Research in Economics and Statistics

Title: Positive tipping points ans transitional dynamics : policies for the green transition

Abstract: Using a dynamic model in which heterogenous consumers make forward-looking choices between brown and green durable goods, we establish conditions under which peer effects lead to multiple steady states and multiple equilibrium path. Policy, such as a green subsidy, needs to exceed a critical threshold level to achieve green transition, and even larger to increase welfare. We analyse the feasibility, speed, and cost of transition showing how they depend on the strength of peer effects, the value of emissions avoided, and on policy employed. 
Pigouvian policies internalising the externalities associated with climate damage and with peer effects may not be sufficient to lead to a green transition; even if they are, they may not yield net benefits given the costs of transition.Outcomes seem relatively insensitive to the exact form of policy measures, providing they exceed the critical threshold level.

Title : Organizing under the Threat of Desertion

Abstract : Organizations are often exposed to the risk that members leave unexpectedly,disrupting coordination and reducing the productivity of those who remain. Thispaper studies how exposure to such departure risk shapes organizationalstructure. We develop a network formation model in which agents choose how torelate to one another in order to produce, and how to share the valuegenerated. When agents face the possibility that a member exits at random,organizational design reflects a trade-off between exploiting coordinationbenefits and limiting fragility. We characterize the set of stableorganizational structures and describe individual behavior under this risk.

On March 19, 2026, Finance for Society will host a high-level conference bringing together policymakers, economists and business leaders to reflect on the future of the European policy agenda in the wake of the Draghi report.

The conference will focus on two major transitions that will shape the next chapter of Europe - the green transition and the security transition - and on the crucial political issue of financing these transitions in an increasingly constrained global environment.
This conference is organised with the support of the Helios Foundation.

https://sbsem.ulb.be/research/solvay-public-policy-house/events/conference-managing-european-transitions-in-a-challenging-world

Registration is required due to limited capacity.