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Charlotte De Cannière
Assistant Professor at the Toulouse School of Economics
Speaker Biography:
Charlotte De Cannière is an Assistant Professor of Economics at the Toulouse School of Economics. She obtained her PhD in Economics from KU Leuven in 2025 and was a visiting PhD researcher at the Barcelona School of Economics. Her research lies at the intersection of environmental economics, energy economics, and empirical industrial organization, with a particular focus on market power, energy, and the energy transition.
Abstract
Market power reduces equilibrium quantities and distorts production, typically causing welfare losses. However, as Buchanan (1969) noted, market power may mitigate overproduction from negative externalities. This paper examines this in the global oil market, where OPEC’s market power affects oil production and carbon intensity. We estimate that from 1970 to 2021, OPEC’s market power reduced emissions by over 52 GtCO2, equating to $3,805 billion in climate damages and 13.8% of the carbon budget needed for the 1.5°C Paris Agreement target. This environmental benefit outweighs the welfare loss from distorted production allocation.