Tuesday, Jan. 5, 2021 3:45 PM - 5:45 PM (EST)
- Chair: Maoyong Fan, Ball State University
Socioeconomic Impacts on Residential Demand for Electrical Services in China
AbstractUnderstanding the residential demand for various energy services is critical for utilities and policymakers for effective demand-side management. However, the practices usually treat the household as an analysis unit, thus may ignore the fact that the electricity consumption is induced demand driven by specific services. This study presents the pattern of various residential demand for electrical service and qualifies the impact of socioeconomic determinants in China. The conditional demand analysis model is performed on the unique dataset of Chinese Residential Energy Consumption Survey 2014 to estimate the electricity demand distribution of eight types services and investigate behavioral responses of socioeconomic variables to service-specific electricity consumption. It shows that both entertainment and fresh keeping services account for about half of the total annual electricity consumption, followed by laundry, lighting, space cooling, and hot water. Rural households use about 7.2% of total electricity for cooking purpose while urban counterparts hardly use electricity to cook. Electricity consumption is negligible for space heating for both urban and rural households. The heterogeneity in socioeconomic determinants are found not only among different electrical services but also between urban and rural households.
The Psychological Appeal of Lottery Tickets on Polluted Days
AbstractWe document a robust positive relationship between air pollution and lottery gambling, and investigate the mechanism for this relationship through psychological, chemical and economic channels. Other air quality factors equal, we find that sulfur dioxide (SO2) rather than subsequently formed particulate matter (PM2.5 and PM10) most robustly accounts for the relationship, suggesting a larger impact of the early particulate formation process than previously considered. In terms of psychological factors, holding air quality composition constant, reduced visibility conditions partially account for the increase in lottery gambling, indicating the importance of mood factors in the pollution-gambling link. I Analysis around a policy change of providing detailed AQI information to the public, shows that the categorical information , discontinuously enhances the pollution-gambling effect, specifically coinciding with the AQI transition into the “Unhealthy” category. That is, individuals’ propensity to purchase lottery tickets is markedly higher for AQI levels marginally above the “Unhealthy” cutoff, indicative of decision-makers’ limited attention to air pollution levels otherwise. Regional economic conditions, specifically unemployment rate and GDP per capita, enhance the appeal of lotteries under polluted conditions.
Location-Based Policies and Unintended Environmental Consequences: Evidence from an Industry Relocation Policy in China
AbstractWe examine the environmental consequences of an industrial relocation policy in
Guangdong, one of the most economically dynamic regions in China. The stated purpose
of the policy is to balance the economic development of different areas in the province.
Applying difference-in-difference-in-differences analysis to annual industry-county level
data, we show that water-pollution-intensive firms relocated from the Pearl River Delta
(PRD, a high-income region at the terminus of the Pearl River) to regions upstream from
the PRD. Since the PRD is substantially more developed than the upstream regions, this
policy resulted in more low-income people becoming exposed to high levels of water and
air pollution. Firms’ decisions to relocate were driven by the more favorable tax regimes
and less stringent pollution regulations in the non-PRD regions. The effects of the policy
on individual firms differed depending on their characteristics. Environmental regulations
were effective only in restraining the new entry of polluting firms into the non-PRD regions.
However, this effect was not strong enough to reverse the relocation trend of pollutionintensive
firms between the PRD and non-PRD areas
Ball State University
Nanjing Audit University
University of Macau
Zhongnan University of Economics and Law
- Q5 - Environmental Economics