An Economist's Role in Lobbying: Addressing the Issue of Negative Prices

Abstract

After two more “traditional” roles for an economist at regulatory authorities (the French Competition Authority and the French Transport Regulator), I joined one of the major trade associations (a polite way to describe a lobby) in the electricity sector, returning to a field characterized by constant, dynamic change. Working as a lobbyist is not an obvious path for students pursuing an M2 or PhD in economics, especially in a sector often led by engineers (frequently from prestigious French “Grandes Ecoles”) or public affairs experts. However, the analytical methods taught at TSE offer alternative approaches to tackling political challenges. To illustrate this, I will discuss a growing and somewhat counterintuitive issue we face: the challenge of negative prices.