Laboratory of Energy Economics and Environmental Management
Established in 2017, EEEM Laboratory is the first and by far the only effort in Hong Kong S.A.R. dedicated to economic analysis of energy and environmental issues.
EEEM focuses on two broad fields: Sustainability and Productivity. In Sustainability, we study how to achieve sustainable economic growth, how to set up fine institutions to support sustainable development, and how to design environmental regulations for Sustainability. In Productivity, we answer research questions related to Productivity and Efficiency, with particular interest in energy use, the carbon market, and the water sector.
EEEM is an international team with researchers from various educational backgrounds, including economics, management, public policy, engineering, and governance. EEEM extends its presence in different continents through its strong international collaborations.
Call for Ph.D. Applications
The E3M laboratory is inviting applications from highly motivated individuals interested in
pursuing a Ph.D. degree.
Our research endeavors revolve around cutting-edge fields,
including Energy and Sustainable Development, Green Business and Finance, Climate
Change and Economic Growth, Environmental Management, and Sustainable Development
Strategies.
We offer a stimulating and collaborative research environment, providing ample
opportunities for academic growth and professional development.
E3M Working Paper Wins ICEF 2024 Best Paper Award
Directed by Prof. Zhang, E3M member Xinya Hao and Yongying Huang's working paper stands out among 240 papers and won the Best Paper Award of the International Conference on Climate and Energy Finance 2024. [Jun. 2024]
E3M Team Visits Germany
From May 20 to 24, 2024, Prof. Zhang led the E3M team on a visit to RWTH Aachen University. During the visit, the team engaged in in-depth discussions on topics such as CBAM policy and advancing related international cooperation initiatives. [May 2024]
The 48th IAEE International Conference
The 48th IAEE International Conference Will Be Held in Hong Kong SAR in the Summer of 2027 with A Theme of Reshaping Energy for the Future.
E3M Seminar #7: Harmonizing Human Development and Eco-conservation: A Case From the Western China
Prof. Cong Li from the School of Economics and Finance at Xi'an Jiaotong University will deliver a CityU seminar on January 30, 2024. Using a policy case in western China, the seminar will focus on the dual vulnerability of the ecological and livelihood systems. All are welcome!
SEE Dean's Distinguished Lecture on 20th November, 2023
Prof. Lori Bennear, Professor of Environmental Economics and Policy and dean of the Nicholas School of the Environment at Duke University has been invited by Prof. Lin Zhang to deliver SEE Dean's Distinguished Lecture.
E3M Seminar #6: The Electric Gini: Income Redistribution through Energy Prices
Professor Arik Levinson from the Economics Department of Georgetown University and the National Bureau of Economic Research will present his latest research on energy Gini. Everyone is welcome to attend.
Environmental information disclosure and firm production: evidence from the estimated efficiency of publicly listed firms in China.New
Journal of Productivity Analysis, 2023
Yunguo Lu and Lin Zhang
This study employs the recently developed conditional nonparametric frontier approach to assess the impact of environmental expenditures associated with environmental information disclosure (EID) on the production of China's listed manufacturing firms from 2010 to 2018. An inverted U-shaped relationship is found between environmental expenditures and firms' productive efficiency. Increasing expenditure on pollution control initially lowers the production efficiency at firm level, and indicates the negative impacts of regulatory costs attributable to the resources devoted to EID-related activities. However, a firm's production efficiency increases with environmental expenditure after a certain threshold, which implies that the regulatory costs can be fully offset by triggering innovation.
When and Under What Conditions Does an Emission Trading Scheme Become Cost Effective?
The Energy Journal, May'2023
Hongyan Zhang, Lin Zhang, Ning Zhang
This paper studies when and under what conditions the actions undertaken by the power plants involved in China's emission trading scheme (ETS) pilot became cost-effective. Based on unique plant-level panel data and the difference-in-differences strategy, we identify that an insignificant initial reduction in cost efficiency occurred at the announcement stage for power plants in the pilot provinces; however, the cost efficiency of the pilot plants increased significantly following formal policy implementation. To enhance the efficacy of the ETS policy, our findings suggest that the design of the policy should consider localized external factors.
China's Low-carbon Economic Transitions towards Carbon Neutrality: Characteristics and Mechanisms
Economic Research Journal, Dec'2022
Wei Jin, Dihai Wang, Lin Zhang
This paper uses provincial panel data to empirically examine the stylized facts of China's low-carbon transition. Carbon pricing, emission efficiency improvement and capital restructuring are robust mechanisms for low-carbon transition. A green growth model is developed to specify the interactions between carbon-intensive capital, clean capital, cumulative carbon stocks and the social cost of carbon emissions. The model analyzes the mechanism through which low-carbon transition could proceed, with a focus on the effects of carbon pricing, efficiency improvement and capital restructuring on transitional dynamics of green growth. The calibrated model is used to quantitatively simulate the time path of low-carbon transition under different scenarios with the carbon neutrality goal.
Air pollution and political trust in local government: Evidence from China
JEEM, Sep'2022
Yao Yao, Xue Li, Russell Smyth, Lin Zhang
We estimate the causal effect of air pollution on political trust in local government in China, which underpins the stability of the authoritarian state. We find that a one μg/m³ exogenous increase in PM2.5 concentrations, due to atmospheric thermal inversion, reduces trust in local government by 4.1 per cent of one standard deviation. We examine the underlying transmission channels and find that prolonged exposure to PM2.5 lowers citizens' life satisfaction and evaluation of local government performance, induces adverse health effects, imposes additional financial burden and, albeit to a lesser extent, reduces household income.
The Thirst for Power: The Impacts of Water Availability on Electricity Generation in China.
The Energy Journal, Feb'2023
Yao An, Lin Zhang
By pairing plant-level information with the fine-scale grid monthly meteorological data, we find significant plant-level technology substi-tution in response to water scarcity: a one-standard-deviation decrease in water availability causes an approximate 205 GWh decline per hydro power plant, a 145 GWh increase per nuclear plant, and a 28 GWh increase per coal-fired plant. This water-induced technology substitution takes place within the grid, and we do not identify cross-grid adjustment. Our estimation shows that the technology substitu-tion is associated with a hidden increase in carbon emission up to 32000 tons per year by plant, resulting in an additional cost of 0.18 million USD. Water scarcity slows down the transition towards renewable energy.
National mitigation policy and the competitiveness of Chinese firms
Energy Economics, Mar'2022
Yunguo Lu, Lin Zhang
This paper analyzes the impacts of carbon intensity control introduced by China''s National Plan on firm competitiveness. By exploiting plausibly exogenous variation in the mandates on carbon intensity reduction across locations, we find that the exposure to mandate significantly decreases firm's energy intensity, but does not affect firm competitiveness measured by productivity. We show that exposure to carbon intensity control causes firms to increase their low-carbon patents by 0.9% and low-carbon patent ratio by 0.2%, with no crowding-out effect on non-low-carbon innovation. Low-carbon innovation induced by the mandate increases firm outputs by expanding the size of labour inputs and fixed assets.
Working Papers
Influential Government Customers and Environmentally Responsible Firms
Xiaojun Yu, Lin Zhang
This paper documents that if the government is a customer of the firm, the firm has higher corporate EID scores, which indicates a firm is motivated to disclose a higher level of corporate environmental responsibility (CER). Firms tend to disclose higher levels of CER efforts to accommodate their influential government customer's environmental concerns. The relative bargaining advantage in the supply chain plays a moderating role on the association between government customer and CER, where the positive impact is more pronounced in firms operating in competitive industries, at a small scale, and with high trade credit.
Do We Still Need Carbon-Intensive Capital When Transitioning to a Green Economy?
Wei Jin, Rick van der Ploeg, Lin Zhang
This paper presents a two-sector green endogenous growth model to explore a mechanism that explains why carbon-intensive capital is not necessarily shut down during transition to a green economy. Without accumulating clean capital to offset carbon emissions, a tightening of climate regulation leads to the running down of carbon-intensive capital. However, if climate regulations induce stepping-up of carbon-free capital to offset warming damages, the economic value of carbon-intensive capital can be protected and the running down of carbon-intensive assets can be mitigated. The use of carbon-intensive capital gives the economic means to enhance clean capital accumulation and sustain endogenous growth. Both carbon-intensive and carbon-free capital may thus be needed for an efficient transition to green growth.
Public and Private Provision of Clean Air: Evidence from Housing Prices and Air Quality in China
Lin Zhang, Huanhuan Zheng
This paper explores the dynamic interaction between housing prices and air quality in a growing economy with changing preferences using panel vector auto-regression. We document robust evidence that better air quality is rewarded by the market with higher housing prices and that faster housing price growth in turn contributes to further air quality improvements.
- All
- 笔墨之林
- E3M Reserach Ariticles
- The Energy Journal
Lin Zhang
Associate Professor
Wei Jin
Research Associate
Hanmin Dong
Joint Ph.D. (CityU-HUST)
Minglai Li
Joint Ph.D. Candidate (CityU-XJTU)
Zekai Ni
Ph.D. Candidate
Yongying Huang
Research Assistant (HUST)
Xinya Hao (Hall)
Ph.D. Candidate
Qiang Li
Ph.D. Student
Lidong Chen
Joint Ph.D. Candidate (CityU-UCAS)
Ao Sun
Joint Ph.D. Candidate (CityU-RUC)
Guanru Zhang (Crystal)
Co-supervised Ph.D. Student (PIA)