2. Public Investment and Low-carbon Transition in France

In Chapter 2, M. Hamdi-Cherif, P. Malliet, F. Reynes, M. Plane, F. Saraceno, and A. Tourbah argue that public investment in France has been on a downward trend since 2009, rebounding only in the wake of the COVID-19 crisis, with the objective of supporting global demand and spurring economic growth. The increase in investment, however, is less pronounced than during the global financial crisis. Orienting investment towards low-carbon capital within the framework of a long-term emission reduction goal, despite being unprecedented in history, is also insufficient, especially if its level is not maintained over the coming decades. The type of low-carbon transition strategy chosen—either relying more on technological progress or reaching a significant reduction in energy consumption (a Sobriety scenario)—will noticeably impact the composition and amount of investment needed to meet the targets.