Abstract
Input-output linkages among sectors and firms are largely overlooked when assessing regulatory policies.
Using a carbon emissions regulation in China as an example, we find that the regulation facilitates the transition to green technologies and reduces entry and carbon emissions in the regulated sectors with large carbon emissions.
We also find unintended spillovers via the input-output network, resulting in more entry and innovation in downstream sectors and less entry and innovation in upstream sectors.
These facts can be rationalized by a firm-dynamics model with input-output linkages. The results of quantitative exercises are substantially different when input-output linkages are taken into account.
Speaker
Chang Wang
Chang Wang is a postdoctoral research fellow at the Erb Institute for Global Sustainable Enterprise, University of Michigan. She received her PhD in Economics from Fudan University.
Her primary research fields include ecological economics and energy and environmental economics.
She has published more than 10 papers in prestigious academic journals, including Journal of Economic Behavior & Organization, International Journal of Industrial Organization, Energy Economics, and China Economic Review.
She is also a recipient of the Peking University–Lincoln Institute Dissertation Fellowship and Fudan University’s “Academic Star” honor.
Discussant
Baichen Xie
Baichen Xie is a Chair Professor and Doctoral Supervisor at Tianjin University. He is also a Research Associate at the Energy Policy Research Group (EPRG), University of Cambridge.
His research focuses on resource management and policy, with particular expertise in energy economics, environmental efficiency evaluation of power systems, and energy and power development planning.
He has led more than 30 research projects and published more than 70 papers in peer-reviewed academic journals, including Omega, Energy Economics, and International Journal of Production Research.
In recognition of his outstanding scientific contributions, he was nominated for the Eni Award and received the Tianjin Social Science Research Achievement Award and the Tianjin Science and Technology Progress Award.