Energy transition will unfortunately require an even higher carbon price in France and Europe

The French are protesting against the sharp rise in energy prices, partly due to the increase in "environmental" taxes on fossil energies. But when we look at the trend in fossil energy consumption in France and the euro zone, we see that a far greater rise in carbon taxes will be needed to return to the trajectory that complies with the climate commitments. This is due to the low price elasticity of fossil energy demand, and the reasonable choice to use the carbon price (and not regulations) to change behaviours.