Discover our interview with Mathias Reynaert, a young researcher in environmental economics.

I hesitated for a long time between a degree in engineering and a more literary one in languages or literature. In the end, I opted for political science, which seemed like a good compromise. But I felt it lacked a quantitative dimension. After three years of study, I switched to economics, a discipline that suited me better. It is a combination of mathematics, statistics and humanities. So I completed my master's degree in economics in Antwerp and started my PhD. I also took courses in industrial economics at Leuven, another Belgian university, where I had the opportunity to work with Professor Frank Verboven.

The impact of public policy on environmental issues related to the automotive market is a complex subject that I became interested in very early on. There was already a large database in this area, and I knew that public policy had a significant influence on environmental issues and would have an even greater influence in the years to come. The government takes many initiatives in the automotive sector (regulations, taxes, specific levies, etc.).

TSE is one of the best economics schools in the world, particularly in the field of industrial economics, a research topic initiated by Nobel Prize winner Jean Tirole. It is very enriching to collaborate and exchange ideas with colleagues of recognised scientific excellence. The topics vary, but the research methods applied are the same. The empirical approach is increasingly developed.
Another very important factor for me is TSE's international outlook. It facilitates numerous exchanges with visiting professors and regular participation in seminars. It is an attractive and stimulating environment in which it is a pleasure to work.

It is very important that there is a place in society for serious research that takes the time to observe public policy. However, the goal of a researcher is not necessarily to have an impact on society. When studying public policy, we can raise questions, point out what is not working and explain why. These are economic models that provide food for thought. We conduct studies with a great deal of expertise and contribute them to the public debate. But the political reality is so complex that there are many factors we cannot take into account. Our task is not to change society; that is the job of politicians.

This project, entitled “Spacetime - Econometric Models to Evaluate Environmental and Spatial Effects of Long-Lasting Policies” aims to understand how public policies affect the geographical distribution of economic activities. It consists of three areas that I will be working on over the next five years, with co-authors based in Europe and the United States.

The first part focuses on subsidies allocated to agriculture in Europe. €60 billion is paid to farmers each year: this is the European Union's largest expenditure. However, where agriculture is practiced, nature no longer exists. My role is therefore to analyze the geographical effects of these subsidies.

Secondly, I am interested in public policies that offer subsidies for public transportation or car purchases. If transportation is free or less expensive, people will tend to live further away from their place of work. Once again, these subsidies have an impact on the geographical distribution of economic activities.

The third project studies traffic congestion models. There are significant externalities. When I take my car in the morning, I have an impact on everyone behind me. There are taxes that limit congestion, but we don't yet have an empirical model that is stable enough to understand what motivates drivers to queue or not.

The European Research Council (ERC) grant will enable me to attract young postdoctoral researchers to TSE every year. For example, I have just welcomed Augusto Ospital, who studied in Los Angeles. He is doing some very interesting research on urban policy in California, particularly on subsidies for house building. These subsidies are leading to urban sprawl and, as a result, increasing the population's exposure to fire risks, which are becoming more and more serious in this region due to global warming.
 

At TSE, we regularly work with researchers from the multidisciplinary Institute for Advanced Study. We also sometimes meet other researchers from UT Capitole at one-off events, such as the recent workshop on biodiversity, which was attended by Julien Bétaille, professor of law at the IEJUC (Institute for Legal Studies in Urban Planning, Construction, and the Environment).

No, because the “Spacetime” project is already very broad. In addition, there is a topic of analysis that was not initially considered but which has ultimately proved to be very important: the development of electric cars in the automotive market. We will therefore study this phenomenon, which has geographical and environmental repercussions. Indeed, choosing an electric vehicle has a definite impact on the electricity market. We want to understand how prices and public policy will affect this choice.