French economy and clean energy transition: A macroeconomic multi-objective extended input-output analysis

Abstract

The complexity of a sustainable economy is rooted in its socio-economic and environmental intricacies, particularly in formulating pathways for the harmonious integration of these parameters. This study introduces an extended input-output analysis and a multi-objective optimisation framework designed to discern trajectories for reducing CO₂ emissions while simultaneously maximising GDP and employment. The economic alterations are evaluated through metrics facilitating the examination of both direct and indirect consequences stemming from perturbations within the economy. The focus of this research centres on the French economy, concentrating on pivotal sectors where reducing demand could yield the greatest reduction in CO₂ emissions with minimal socio-economic ramifications. Additionally, a model is outlined for energy substitution, wherein fossil fuels in the French electricity mix are supplanted with clean energies. The ensuing effects of such a model on emission reduction pathways are scrutinised, followed by a comparison with the baseline case study.