出版文献

2021
Haiyang Lin, Qiuwei Wu, Xinyu Chen, Xi Yang, Xinyang Guo, Jiajun Lv, Tianguang Lu, Shaojie Song, and Michael B. McElroy. 2021. “Economic and Technological Feasibility of Using Power-to-Hydrogen Technology under Higher Wind Penetration in China.” Renewable Energy, 173, Pp. 569-580. Publisher's VersionAbstract
Hydrogen can play a key role in facilitating the transition to a future deeply decarbonized energy system and can help accommodate higher penetrations of renewables in the power system. Arguments to justify this conclusion are supported by an analysis based on real-world data from China’s Western Inner Mongolia (WIM). The economic feasibility and decarbonization potential of renewable-based hydrogen production are discussed through an integrated power-hydrogen-emission analytical framework. The framework combines a high-resolution wind resource analysis with hourly simulation for the operation of power systems and hydrogen production considering technical and economic specifications on selection of three different types of electrolyzers and two operating modes. The results indicate that using wind power to produce hydrogen could provide a cost-competitive alternative (<2 $kg-1) to WIM’s current coal-dominated hydrogen manufacturing system, contributing at the same time to important reductions in wind curtailment and CO2 emissions. The levelized cost for hydrogen production is projected to decrease in the coming decade consistent with increases in wind power capacity and decreases in capital costs for electrolyzers. Lessons learned from the study can be applied to other regions and countries to explore possibilities for larger scale economically justified and carbon saving hydrogen production with renewables.
Xi Yang, Jun Pang, Fei Teng, Ruixin Gong, and Cecilia Springer. 2021. “The environmental co-benefit and economic impact of China’s low-carbon pathways: Evidence from linking bottom-up and top-down models.” Renewable and Sustainable Energy Reviews, 136, February 2021, Pp. 110438. Publisher's VersionAbstract
Deep decarbonization pathways (DDPs) can be cost-effective for carbon mitigation, but they also have environmental co-benefits and economic impacts that cannot be ignored. Despite many empirical studies on the co-benefits of NDCs at the national or sectoral level, there is lack of integrated assessment on DDPs for their energy, economic, and environmental impact. This is due to the limitations of bottom-up and top-down models when used alone. This paper aims to fill this gap and link the bottom-up MAPLE model with a top-down CGE model to evaluate China's DDPs' comprehensive impacts. First, results show that carbon dioxide emissions can be observed to peak in or before 2030, and non-fossil energy consumption in 2030 is around 27%, which is well above the NDC target of 20%. Second, significant environmental co-benefits can be expected: 7.1 million tons of SO2, 3.96 million tons of NOx, and 1.02 million tons of PM2.5 will be reduced in the DDP scenario compared to the reference scenario. The health co-benefits demonstrated with the model-linking approach is around 678 billion RMB, and we observe that the linked model results are more in accordance with the conclusions of existing studies. Third, after linking, we find the real GDP loss from deep decarbonization is reduced from 0.92% to 0.54% in 2030. If the environmental co-benefits are considered, the GDP loss is further offset by 0.39%. The primary innovation of this study is to give a full picture of DDPs' impact, considering both environmental co-benefits and economic losses. We aim to provide positive evidence that developing countries can achieve targets higher than stated in the NDCs through DDP efforts, which will have clear environmental co-benefits to offset the economic losses.
Cao Jing, Hancheng Dai, Shantong Li, Chaoyi Guo, Mun Ho, Wenjia Cai, Jianwu He, Hai Huang, Jifeng Li, Yu Liu, Haoqi Qian, Can Wang, Libo Wu, and Xiliang Zhang. 2021. “The general equilibrium impacts of carbon tax policy in China: a multi-model assessment.” Energy Economics, 99, July 2021, Pp. 105284. Publisher's VersionAbstract
We conduct a multi-model comparison of a carbon tax policy in China to examine how different models simulate the impacts in both near-term 2020, medium-term 2030, and distant future 2050. Though Top-down computable general equilibrium(CGE) models have been applied frequently on climate or other environmental/energy policies to assess emission reduction, energy use and economy-wide general equilibrium outcomes in China, the results often vary greatly across models, making it challenging to derive policies. We compare 8 China CGE models with different characteristics to examine how they estimate the effects of a plausible range of carbon tax scenarios – low, medium and high carbon taxes.. To make them comparable we impose the same population growth, the same GDP growth path and world energy price shocks. We find that the 2030 NDC target for China are easily met in all models, but the 2060 carbon neutrality goal cannot be achieved even with our highest carbon tax rates. Through this carbon tax comparison, we find all 8 CGE models differ substantially in terms of impacts on the macroeconomy, aggregate prices, energy use and carbon reductions, as well as industry level output and price effects. We discuss the reasons for the divergent simulation results including differences in model structure, substitution parameters, baseline renewable penetration and methods of revenue recycling.
Haiyang Lin, Caiyun Bian, Yu Wang, Hailong Li, Qie Sun, and Fredrik Wallen. 2021. “Optimal planning of intra-city public charging stations.” Energy, Volume 238, Part C, 1 January 2022, Pp. 121948. Publisher's VersionAbstract
Intra-city Public Charging Stations (PCSs) play a crucial role in promoting the mass deployment of Electric Vehicles (EVs). To motivate the investment on PCSs, this work proposes a novel framework to find the optimal location and size of PCSs, which can maximize the benefit of the investment. The impacts of charging behaviors and urban land uses on the income of PCSs are taken into account. An agent-based trip chain model is used to represent the travel and charging patterns of EV owners. A cell-based geographic partition method based on Geographic Information System is employed to reflect the influence of land use on the dynamic and stochastic nature of EV charging behaviors. Based on the distributed charging demand, the optimal location and size of PCSs are determined by mixed-integer linear programming. Västerås, a Swedish city, is used as a case study to demonstrate the model's effectiveness. It is found that the charging demand served by a PCS is critical to its profitability, which is greatly affected by the charging behavior of drivers, the location and the service range of PCS. Moreover, charging price is another significant factor impacting profitability, and consequently the competitiveness of slow and fast PCSs.
energy.pdf
Peter Sherman, Shaojie Song, Xinyu Chen, and Michael B. McElroy. 2021. “Projected changes in wind power potential over China and India in high resolution climate models.” Environmental Research Letters, 16, 3. Publisher's VersionAbstract
As more countries commit to emissions reductions by midcentury to curb anthropogenic climate change, decarbonization of the electricity sector becomes a first-order task in reaching this goal. Renewables, particularly wind and solar power, will be predominant components of this transition. How availability of the wind and solar resource will change in the future in response to regional climate changes is an important and underdiscussed topic of the decarbonization process. Here, we study changes in potential for wind power in China and India, evaluating prospectively until the year 2060. To do this, we study a downscaled, high-resolution multimodel ensemble of CMIP5 models under high and low emissions scenarios. While there is some intermodel variability, we find that spatial changes are generally consistent across models, with decreases of up to 965 (a 1% change) and 186 TWh (a 2% change) in annual electricity generation potential for China and India, respectively. Compensating for the declining resource are weakened seasonal and diurnal variabilities, allowing for easier large-scale wind power integration. We conclude that while the ensemble indicates available wind resource over China and India will decline slightly in the future, there remains enormous potential for significant wind power expansion, which must play a major role in carbon neutral aspirations.
Qing Yang, Hewen Zhou, Pietro Bartocci, Francesco Fantozzi, Ondřej Mašek, Foster Agblevor, Zhiyu Wei, Haiping Yang, Hanping Chen, Xi Lu, Guoqing Chen, Chuguang Zheng, Chris P. Nielsen, and Michael B. McElroy. 2021. “Prospective contributions of biomass pyrolysis to China’s 2050 carbon reduction and renewable energy goals.” Nature Communications. Publisher's VersionAbstract
Deployment of negative emission technologies needs to start immediately if we are to avoid overshooting international carbon targets, reduce negative climate impacts, and minimize costs of emission mitigation. Actions in China, given its importance for the global anthropogenic carbon budget, can be decisive. While bioenergy with carbon capture and storage (BECCS) may need years to mature, this study focuses on developing a ready-to-implement biomass intermediate pyrolysis poly-generation (BIPP) technology to produce a potentially stable form of biochar, a medium for carbon storage, and to provide a significant source of valuable biofuels, especially pyrolysis gas. Combining the experimental data with hybrid models, the results show that a BIPP system can be profitable without subsidies: its national deployment could contribute to a 68% reduction of carbon emissions per unit of GDP in 2030 compared to 2005 and could result additionally in a reduction in air pollutant emissions. With 73% of national crop residues converted to biochar and other biofuels in the near term (2020 to 2030), the cumulative greenhouse gas (GHG) reduction could reach up to 5653 Mt CO2-eq by 2050, which could contribute 9-20% of the global GHG emission reduction goal for BECCS (28-65 Gt CO2-eq in IPCC’s 1.5 °C pathway), and nearly 2633 Mt more than that projected for BECCS alone. The national BIPP development strategy is developed on a provincial scale based on a regional economic and life-cycle analysis. 
Tianguang Lu, Xinyu Chen, Michael B. McElroy, Chris Nielsen, Wu Qiuwei, Hongying He, and Qian Ai. 2021. “A reinforcement learning-based decision system for electricity pricing plan selection by smart grid end users.” IEEE Transactions on Smart Grid, 1949-3061 . Publisher's VersionAbstract
With the development of deregulated retail power markets, it is possible for end users equipped with smart meters and controllers to optimize their consumption cost portfolios by choosing various pricing plans from different retail electricity companies. This paper proposes a reinforcement learning-based decision system for assisting the selection of electricity pricing plans, which can minimize the electricity payment and consumption dissatisfaction for individual smart grid end user. The decision problem is modeled as a transition probability-free Markov decision process (MDP) with improved state framework. The proposed problem is solved using a Kernel approximator-integrated batch Q-learning algorithm, where some modifications of sampling and data representation are made to improve the computational and prediction performance. The proposed algorithm can extract the hidden features behind the time-varying pricing plans from a continuous high-dimensional state space. Case studies are based on data from real-world historical pricing plans and the optimal decision policy is learned without a priori information about the market environment. Results of several experiments demonstrate that the proposed decision model can construct a precise predictive policy for individual user, effectively reducing their cost and energy consumption dissatisfaction.
Peter Sherman, Meng Gao, Shaojie Song, Alex T. Archibald, Nathan Luke Abraham, Jean-François Lamarque, Drew Shindell, Gregory Faluvegi, and Michael B. McElroy. 2021. “Sensitivity of modeled Indian monsoon to Chinese and Indian aerosol emissions.” Atmospheric Chemistry and Physics, 21, 5, Pp. 3593–3605. Publisher's VersionAbstract
The South Asian summer monsoon supplies over 80 % of India's precipitation. Industrialization over the past few decades has resulted in severe aerosol pollution in India. Understanding monsoonal sensitivity to aerosol emissions in general circulation models (GCMs) could improve predictability of observed future precipitation changes. The aims here are (1) to assess the role of aerosols in India's monsoon precipitation and (2) to determine the roles of local and regional emissions. For (1), we study the Precipitation Driver Response Model Intercomparison Project experiments. We find that the precipitation response to changes in black carbon is highly uncertain with a large intermodel spread due in part to model differences in simulating changes in cloud vertical profiles. Effects from sulfate are clearer; increased sulfate reduces Indian precipitation, a consistency through all of the models studied here. For (2), we study bespoke simulations, with reduced Chinese and/or Indian emissions in three GCMs. A significant increase in precipitation (up to ∼20 %) is found only when both countries' sulfur emissions are regulated, which has been driven in large part by dynamic shifts in the location of convective regions in India. These changes have the potential to restore a portion of the precipitation losses induced by sulfate forcing over the last few decades.
Jing Cao, Mun S. Ho, Rong Ma, and Fei Teng. 2021. “When carbon emission trading meets a regulated industry: Evidence from the electricity sector of China.” Journal for Public Economics, 200, August 2021, Pp. 104470. Publisher's VersionAbstract
This paper provides retrospective firm-level evidence on the effectiveness of China’s carbon market pilots in reducing emissions in the electricity sector. We show that the carbon emission trading system (ETS) has no effect on changing coal efficiency of regulated coal- fired power plants. Although we find a significant reduction in coal consumption associated with ETS participation, this reduction was achieved by reducing electricity production. The output contraction in the treated plants is not due to their optimizing behavior but is likely driven by government decisions, because the impacts of emission permits on marginal costs are small relative to the controlled electricity prices and the reduction is associated with financial losses. In addition, we find no evidence of carbon leakage to other provinces, but a significant increase in the production of non-coal-fired power plants in the ETS regions. 
2020
Faan Chen, Jingyang Lyu, and Tianye Wang. 2020. “Benchmarking road safety development across OECD countries: An empirical analysis for a decade.” Accident Analysis & Prevention, 147, November, Pp. 105752. Publisher's VersionAbstract
Benchmarking performance, monitoring progress and then recalibrating interventions is widely recognized as a valuable process for achieving continuous improvement in road safety. In this study, a systematic and effective methodology, IV-VIKOR with FNBC, is developed to perform the benchmarking of road safety development in an integrative manner for OECD (Organisation for Economic Co-operation and Development) countries. Linking to other methods and measures as the references, 36 OECD Member countries are ranked and grouped into several classes based on their overall achievement regarding road safety from the past decade (2009–2018). This provides government officials and policymakers, across the OECD Member countries, with a flexible tool to comprehensively benchmark road safety development. Providing the ability to identify delays in action plan implementations and proactively redistribute resources toward more effective measures where required. Such a tool can also serve to increase political will and stakeholder accountabilities, at the highest level of government and the private sector for all OECD members: Thereby keeping the implementation of action plans on schedule. It helps OECD Member countries to establish the capacity for sustainable safety management; supporting them in developing future strategies and reforms to create better policies for better lives.
Cao Jing, Mun S. Ho, and Wenaho Hu. 2020. “Analyzing carbon price policies using a general equilibrium model with household energy demand functions.” In Measuring Economic Growth and Productivity, edited by B Fraumeni, 1st ed. Cambridge, MA: Academic Press. Publisher's VersionAbstract
Multi-sector general equilibrium models are used to simulate the effects of environmental policies on industry output and consumption at disaggregated levels. The specification of household demand in such models often use simpler forms such as CES or Linear Expenditure Systems since there are few estimates of more flexible systems. We estimate a 2-stage translog utility function that explicitly accounts for detailed energy expenditures to allow us to capture the price and income effects more accurately than these simpler forms. We incorporate this into a China growth model to simulate the effects of a carbon price to achieve the government targets for the Climate Change (Paris) agreements.
Final Manuscript in DASH.
An edited volume dedicated to Prof. Dale W. Jorgenson by his students and collaborators.
Jing Cao, Mun S Ho, and Rong Ma. 2020. “Analyzing Carbon Pricing Policies using a General Equilibrium Model with Production Parameters Estimated using Firm Data.” Energy Economics. Publisher's VersionAbstract

Policy simulation results of Computable General Equilibrium (CGE) models largely hinge on the choices of substitution elasticities among key input factors. Currently, most CGE models rely on the common elasticities estimated from aggregated data, such as the GTAP model elasticity parameters. Using firm level data, we apply the control function method to estimate CES production functions with capital, labor and energy inputs and find significant heterogeneity in substitution elasticities across different industries. Our capital-labor substitution elasticities are much lower than the GTAP values while our energy elasticities are higher. We then incorporate these estimated elasticities into a CGE model to simulate China’s carbon pricing policies and compare with the results using GTAP parameters. Our less elastic K-L substitution lead to lower base case GDP growth, but our more elastic energy substitution lead to lower coal use and carbon emissions. In the carbon tax policy exercises, we find that our elasticities lead to easier reductions in coal use and carbon emissions.

Meng Gao, Zirui Liu, Bo Zheng, Dongsheng Ji, Peter Sherman, Shaojie Song, Jinyuan Xin, Cheng Liu, Yuesi Wang, Qiang Zhang, Jia Xing, Jingkun Jiang, Zifa Wang, Gregory R. Carmichael, and Michael B. McElroy. 2020. “China's emission control strategies have suppressed unfavorable influences of climate on wintertime PM2.5 concentrations in Beijing since 2002.” Atmospheric Chemistry and Physics, 20, 3, Pp. 1497-1505. Publisher's VersionAbstract
Severe wintertime PM2.5 pollution in Beijing has been receiving increasing worldwide attention, yet the decadal variations remain relatively unexplored. Combining field measurements and model simulations, we quantified the relative influences of anthropogenic emissions and meteorological conditions on PM2.5 concentrations in Beijing over the winters of 2002–2016. Between the winters of 2011 and 2016, stringent emission control measures resulted in a 21 % decrease in mean mass concentrations of PM2.5 in Beijing, with 7 fewer haze days per winter on average. Given the overestimation of PM2.5 by the model, the effectiveness of stringent emission control measures might have been slightly overstated. With fixed emissions, meteorological conditions over the study period would have led to an increase in haze in Beijing, but the strict emission control measures have suppressed the unfavorable influences of the recent climate. The unfavorable meteorological conditions are attributed to the weakening of the East Asia winter monsoon associated particularly with an increase in pressure associated with the Aleutian Low.
ACP_Full_Text
Haotian Zheng, Shaojie Song, Golam Sarwar, Masao Gen, Shuxiao Wang, Dian Ding, Xing Chang, Shuping Zhang, Jia Xing, Yele Sun, Dongsheng Ji, Chak Chan, Jian Gao, and Michael B. McElroy. 2020. “Contribution of particulate nitrate photolysis to heterogeneous sulfate formation for winter haze in China.” Environmental Science & Technology Letters , 7, 9, Pp. 632–638. Publisher's VersionAbstract
Nitrate and sulfate are two key components of airborne particulate matter (PM). While multiple formation mechanisms have been proposed for sulfate, current air quality models commonly underestimate its concentrations and mass fractions during northern China winter haze events. On the other hand, current models usually overestimate the mass fractions of nitrate. Very recently, laboratory studies have proposed that nitrous acid (N(III)) produced by particulate nitrate photolysis can oxidize sulfur dioxide to produce sulfate. Here, for the first time, we parameterize this heterogeneous mechanism into the state-of-the-art Community Multi-scale Air Quality (CMAQ) model and quantify its contributions to sulfate formation. We find that the significance of this mechanism mainly depends on the enhancement effects (by 1–3 orders of magnitude as suggested by the available experimental studies) of nitrate photolysis rate constants in aerosol liquid water compared to that in the gas phase. Comparisons between model simulations and in-situ observations in Beijing suggest that this pathway can explain about 15% (assuming an enhancement factor (EF) of 10) to 65% (assuming EF = 100) of the model–observation gaps in sulfate concentrations during winter haze. Our study strongly calls for future research on reducing the uncertainty in EF.
Chenghe Guan, Jihoon Song, Michael Keith, Yuki Akiyama, Ryosuke Shibasaki, and Taisei Sato. 2020. “Delineating urban park catchment areas using mobile phone data: A case study of Tokyo.” Computers, Environment and Urban Systems, 81. Publisher's VersionAbstract
Urban parks can offer both physical and psychological health benefits to urban dwellers and provide social, economic, and environmental benefits to society. Earlier research on the usage of urban parks relied on fixed distance or walking time to delineate urban park catchment areas. However, actual catchment areas can be affected by many factors other than park surface areas, such as social capital cultivation, cultural adaptation, climate and seasonal variation, and park function and facilities provided. This study advanced this method by using mobile phone data to delineate urban park catchment area. The study area is the 23 special wards of Tokyo or tokubetsu-ku, the core of the capital of Japan. The location data of over 1 million anonymous mobile phone users was collected in 2011. The results show that: (1) the park catchment areas vary significantly by park surface areas: people use smaller parks nearby but also travel further to larger parks; (2) even for the parks in the same size category, there are notable differences in the spatial pattern of visitors, which cannot be simply summarized with average distance or catchment radius; and (3) almost all the parks, regardless of its size and function, had the highest user density right around the vicinity, exemplified by the density-distance function closely follow a decay trend line within 1-2 km radius of the park. As such, this study used the density threshold and density-distance function to measure park catchment. We concluded that the application of mobile phone location data can improve our understanding of an urban park catchment area, provide useful information and methods to analyze the usage of urban parks, and can aid in the planning and policy-making of urban parks.
Fei Xiao, Tianguang Lu, Qian Ai, Xiaolong Wang, Xinyu Chen, Sidun Fang, and Qiuwei Wu. 2020. “Design and implementation of a data-driven approach to visualizing power quality.” IEEE Transactions on Smart Grid, 114, DOI: 10.1109/TSG.2020.2985767. Publisher's VersionAbstract
Numerous underlying causes of power-quality (PQ) disturbances have enhanced the application of situational awareness to power systems. This application provides an optimal overall response for contingencies. With measurement data acquired by a multi-source PQ monitoring system, we propose an interactive visualization tool for PQ disturbance data based on a geographic information system (GIS). This tool demonstrates the spatio–temporal distribution of the PQ disturbance events and the cross-correlation between PQ records and environmental factors, leveraging Getis statistics and random matrix theory. A methodology based on entity matching is also introduced to analyze the underlying causes of PQ disturbance events. Based on real-world data obtained from an actual power system, offline and online PQ data visualization scenarios are provided to verify the effectiveness and robustness of the proposed framework.
X. Lu, L. Zhang, T. Wu, M. S. Long, J. Wang, D.J. Jacob, F. Zhang, J. Zhang, S. D. Eastham, L. Hu, L. Zhu, X. Liu, and M Wei. 2020. “Development of the global atmospheric general circulation-chemistry model BCC-GEOS-Chem v1.0: model description and evaluation.” Geoscientific Model Development, 13, 9, Pp. 3817–3838. Publisher's VersionAbstract
Chemistry plays an indispensable role in investigations of the atmosphere; however, many climate models either ignore or greatly simplify atmospheric chemistry, limiting both their accuracy and their scope. We present the development and evaluation of the online global atmospheric chemical model BCC-GEOS-Chem v1.0, coupling the GEOS-Chem chemical transport model (CTM) as an atmospheric chemistry component in the Beijing Climate Center atmospheric general circulation model (BCC-AGCM). The GEOS-Chem atmospheric chemistry component includes detailed troposphericHOx–NOx–volatile organic compounds–ozone–bromine–aerosol chemistry and online dry and wet deposition schemes. We then demonstrate the new capabilities of BCC-GEOS-Chem v1.0 relative to the base BCC-AGCM model through a 3-year (2012–2014) simulation with anthropogenic emissions from the Community Emissions Data System (CEDS) used in the Coupled Model Intercomparison Project Phase 6 (CMIP6). The model captures well the spatial distributions and seasonal variations in tropospheric ozone, with seasonal mean biases of 0.4–2.2 ppbv at 700–400 hPa compared to satellite observations and within 10 ppbv at the surface to 500 hPa compared to global ozonesonde observations. The model has larger high-ozone biases over the tropics which we attribute to an overestimate of ozone chemical production. It underestimates ozone in the upper troposphere which is likely due either to the use of a simplified stratospheric ozone scheme or to biases in estimated stratosphere–troposphere exchange dynamics. The model diagnoses the global tropospheric ozone burden, OH concentration, and methane chemical lifetime to be 336 Tg, 1.16×106 molecule cm−3, and 8.3 years, respectively, which is consistent with recent multimodel assessments. The spatiotemporal distributions of NO2, CO, SO2, CH2O, and aerosol optical depth are generally in agreement with satellite observations. The development of BCC-GEOS-Chem v1.0 represents an important step for the development of fully coupled earth system models (ESMs) in China.
Jing Cao, Mun S. Ho, Wenhao Hu, and Dale Jorgenson. 2020. “Effective Labor Supply and Growth Outlook in China.” China Economic Review, 61, Pp. 101398. Publisher's VersionAbstract
The falling projections of working-age population in China has led to predictions of much slower economic growth. We consider three mechanisms that could contribute to higher effective labor supply growth – further improvement in educational attainment due to cohort replacement and rising college enrollment, improvement in aggregate labor quality due to urbanization, and higher labor force participation due to later retirement. We find that these factors result in a projected growth rate of effective labor input of 0.40% for 2015-2030 compared to -0.60% for working age population. As a result, the projected growth rate of GDP will be 5.80% for 2015-2030 compared to 5.23% if these factors are ignored.
Richard Goettle, Mun S. Ho, and Peter Wilcoxen. 2020. “Emissions accounting and carbon tax incidence in CGE models: bottom-up versus top-down.” In Measuring Economic Growth and Productivity: Foundations, KLEMS Production Models, and Extensions, edited by Fraumeni, B, 1st ed. Cambridge, MA: Academic Press. Publisher's VersionAbstract
Multi-sector general equilibrium models are the work-horses used to analyze the impact of carbon prices in climate policy discussions. Such models often have distinct industries to represent coal, liquid fuels, and gas production where the output over time is represented by quantity and price indexes. The industries that buy these fuels, however, do not use a common homogenous quantity (e.g., steam coal vs. metallurgical coal) and have distinct purchasing price indexes. In accounting for energy use or CO2 emissions, modelers choose to attach coefficients either bottom-up to a sector specific input index or top-down to an average output index and this choice has a direct bearing on the incidence of carbon taxation. We discuss how different accounting methods for the differences in prices can have a large effect on the simulated impact of carbon prices. We emphasize the importance for modelers to be explicit about their methods.
An edited volume dedicated to Prof. Dale W. Jorgenson by his students and collaborators.  Final Manuscript in DASH
Jing Cao, Mun S. Ho, Wenhao Hu, and Dale W. Jorgensen. 2020. “Estimating flexible consumption functions for urban and rural households in China.” China Economic Review, 61, Pp. 101453. Publisher's VersionAbstract
There are few comprehensive studies of household consumption in China due to data restrictions. This prevents the calculation of inequality indices based on consumption. Secondly, this makes a comprehensive analysis of policies that affect consumption difficult; economy-wide models used for analysis often have to employ simple consumption forms with unit income elasticities. We estimate a translog demand system distinguished by demographic characteristics, giving price and income elasticities that should be useful for policy analysis. We estimate separate functions for urban and rural households using household expenditure data and detailed commodity prices (1995-2006). This allows future analysis of social welfare and inequality based on consumption to supplement existing studies based on income. To illustrate an application of the model, we project consumption composition based on projected prices, incomes and demographic changes – aging, education improvement and urbanization.

Pages