"Emissions Trading Schemes and Directed Technological Change: Evidence from China" [Job Market Paper] [Draft] (submitted)
Abstract: This paper examines the impact of carbon emissions trading schemes (ETS) on technical change proxied by the number of green patents in the context of the pilot ETS in China. I find a small increase of 0.16 patents per firm and year. A 10 percent increase in carbon prices increases green patents by 2 percent. The strongest effects are for the two regions in the upper range of carbon prices and for more productive firms. However, there are contrasting patterns at the extensive and intensive margins of green innovation: the pilot ETS reduces entry into green innovative activities but increases levels of innovating for firms that were innovative before they were regulated by ETS, especially for the more productive firms. This indicates that an important policy challenge is to encourage the firms covered by ETS to start innovation in green technologies; this applies particularly to the larger and more productive firms.
"Heterogeneous Responses to Carbon Pricing: Firm-level Evidence from Beijing Emissions Trading Scheme", with Da Zhang, Xiliang Zhang and Thomas Sterner, draft forthcoming
Abstract: Using a fuzzy regression discontinuity design on a unique firm-level carbon emissions data, we study the effect of pilot Emissions Trading Scheme in Beijing on emissions mitigation. We find that emissions are reduced by 36 percent. However, this result is not significantly different from zero. We then estimate the effects by sectors and find that pilot firms in the industrial sector significantly reduce carbon emissions by 54 percent. Additionally, the pilot ETS accelerates the coal phase-out process by increasing natural gas consumption and decreasing coal consumption. We do not find such an evidence on firms in the service sector.
"The Weakest Link: Assessing the Supply Chain Effect of Natural Disasters", with Katharina Längle and Ankai Xu, draft forthcoming
Abstract: This paper uses Chinese firm level data to detect the international propagation of adverse shocks triggered by the US hurricane season in 2005. We provide evidence that Chinese processing manufacturers with tight trade linkages to the US reduce their intermediate imports from the US between July and October 2005. We further show that the direct exposure to US supply shocks led to a temporary decline of firm exports between September and November 2005. Moreover, the paper finds that firms with more diversified suppliers tend to be less affected by the US hurricane disaster. The paper does not find consistent evidence for an international propagation of supply shocks along global value chains.
WORK IN PROGRESS
"Trade, Environmental Regulation and Innovation"
"Environmental Regulation and the Geography of Green Innovation", with Ankai Xu
PUBLICATIONS (Before PhD Studies)
"Study on the Promotion of Natural Gas-Fired Electricity with Energy Market Reform in China Using a Dynamic Game-Theoretic Model", with Qi Zhang et al., Applied Energy. 2017, 185, 1832-1839.