|Center for Business and Public Policy (CBPP), University of Illinois at Urbana-Champaign
|Gutgsell Professor of Finance, University of Illinois at Urbana-Champaign
|Institute of Government and Public Affairs (IGPA), University of Illinois at Urbana-Champaign
environmental and energy economics and policy analysis, public economics and taxation, and distributional effects of taxes, social security, & regulations
Honors and Awards
- AERE Fellow, 2014, Award of the Association of Environmental and Resource Economists
- List of Teachers Ranked as Excellent by their Students, UIUC, 2008, 2009, 2010, 2011, 2013, 2016, 2018, 2019
- Meritorious Service Award, U.S. Treasury Department, 1987
- First Prize, Outstanding Doctoral Dissertation Award, National Tax Association, 1979
Finance Department and IGPA
University of Illinois
4046 BIF, Box#30 (MC520)
515 East Gregory Drive
Champaign, IL 61820
cell: (512) 750-6012
What Determines Effectiveness of Renewable Energy Standards? General Equilibrium Analytical Model and Empirical Analysis (forthcoming) Journal of the Association of Environmental and Resource Economists (2024)
Our new analytical general equilibrium model is used to study effects of tightening state Renewable Portfolio Standards (RPS) on electricity price, CO2 emissions, fossil fuel electricity generation, and two kinds of renewable generation. We show ...
Do Market Failures Create a ‘Durability Gap’ in the Circular Economy? (forthcoming) Journal of the Association of Environmental and Resource Economists (2024)
The interdisciplinary circular economy literature recommends longer lasting products, to reduce pollution from repeated production and disposal. For any type of appliance, we assume consumers choose among variants with different durability. Firms are competitive. Standard ...
Introducing the Circular Economy to Economists Annual Review of Resource Economics (2022)
A circular economy (CE) would reduce both extraction and disposal by encouraging green design and circular business models, as well as repair, reuse, remanufacturing, and recycling. The CE started among architects and engineers, with little ...
When and How to Use Economy-Wide Models for Environmental Policy Analysis Annual Review of Resource Economics (2022)
We describe the factors researchers should consider in deciding when and how to use computational general equilibrium (CGE) models for environmental policy analysis instead of partial equilibrium or engineering models. Special attention is given to ...
Net Burdens of Carbon Policy Vary within Each Income Group — and within Each Nation CESifo Forum 5 (2021)
Most studies of the distributional effects of climate policy are about the “vertical” distribution of burdens up and down the income scale, especially comparing low- and high-income households within the US or Europe. Other studies ...
Costs of Energy Efficiency Mandates Can Reverse the Sign of Rebound Journal of Public Economics (2020)
Improvements in energy efficiency reduce the cost of consuming services from household cars and appliances and can result in a positive rebound effect that offsets part of the direct energy savings. We use a general ...
Environmental Economics: The 50th Anniversary of the Birth of this Field around the First Earth Day Earth 2020: An Insider’s Guide to a Rapidly Changing Planet (2020)
How was the birth of “Environmental Economics” related to the first Earth Day fifty years ago (April 22, 1970)? This short note introduces some ideas about an amazing burst of intellectual activity from 1968 to ...
Environmental Policy on the Back of an Envelope: A Cobb-Douglas Model is Not Just a Teaching Tool Energy Economics (2019)
To clarify and interpret the workings of a large computable general equilibrium (CGE) model of environmental policy in the U.S., we build an aggregated Cobb-Douglas (CD) model that can be solved easily and analytically. Its ...
Vertical and Horizontal Redistributions from a Carbon Tax and Rebate Journal of the Association of Environmental and Resource Economists (2019)
Are carbon taxes regressive? To calculate effects of a carbon tax on each family’s expenditures, plus distributional effects of three revenue-recycling mechanisms, we employ the U.S. Treasury Distribution Model. It includes 322,000 tax returns, matched ...
Who Bears the Economic Burdens of Environmental Regulations? Review of Environmental Economics and Policy (2019)
Public economics has a well-developed literature on tax incidence – the ultimate burdens from tax policy. This literature is used here to describe not only the distributional effects of environmental taxes or subsidies but also ...
Multiple Pollutants, Co-Benefits, and Suboptimal Environmental Policies Journal of Environmental Economics and Management (2018)
In our analytical general equilibrium model, polluting inputs can be substitutes or complements. We study a tax increase on one pollutant where the other faces a tax or permit policy. Our solutions highlight key parameters ...
Potential State-Level Carbon Revenue under the Clean Power Plan Contemporary Economic Policy (2018)
In 2015, the U.S. EPA issued the Clean Power Plan under which each state can set a mass-based target to meet its assigned electric power sector carbon dioxide emission reductions. If it proceeds, states can ...
Public Finance in a Nutshell: A Cobb Douglas Teaching Tool for General Equilibrium Tax Incidence and Excess Burden National Tax Journal (2017)
To help first- or second-year graduate students in economics apply their theoretical training, this paper shows how to solve a simple and intuitive computable general equilibrium (CGE) model using a calculator. Because this simplified Harberger ...
The Use of Economy-Wide Models in Evaluating the Social Costs, Benefits, and Economic Impacts of Air Regulations (2017)
The National Center for Environmental Economics (NCEE) in the EPA Office of Policy requested advice from the Science Advisory Board (SAB) on the use of economy-wide modeling (EWM) for assessing the benefits and costs of ...
A Model to Evaluate Vehicle Emission Incentive Policies in Japan Environmental Economics and Policy Studies (2015)
Using 3 years of data from the 47 prefectures of Japan, we estimate the behavior of households that simultaneously make discrete decisions about vehicle ownership and continuous decisions about driving distance. We use the estimated ...
Can a Unilateral Carbon Tax Reduce Emissions Elsewhere? Resource and Energy Economics (2014)
One country or sector that tries to reduce greenhouse gas emissions may fear that other countries or sectors will get a competitive advantage and increase emissions. Computable general equilibrium (CGE) models such as Elliott et ...
Negative Leakage Journal of the Association of Environmental and Resource Economists (2014)
Our analytical general equilibrium model solves for effects of a small increase in carbon tax on leakage – the increase in emissions elsewhere. Identical consumers buy two goods using income from endowments that are mobile ...
Social, Economic, and Ethical Concepts and Methods Climate Change Mitigation (2014)
This framing chapter describes the strengths and limitations of the most widely used concepts and methods in economics, ethics, and other social sciences that are relevant to climate change. It also provides a reference resource ...
Vehicle Choices, Miles Driven, and Pollution Policies Journal of Regulatory Economics (2013)
Mobile sources contribute large percentages of each pollutant, but technology is not yet available to measure and tax emissions from each vehicle. We build a behavioral model of household choices about vehicles and miles traveled. ...
Leakage, Welfare, and Cost-Effectiveness of Carbon Policy American Economic Review, Papers and Proceedings (2013)
We extend the model of Fullerton et al (2012) to explore cost-effectiveness of unilateral climate policy in the presence of leakage. We ignore the welfare gain from reducing greenhouse gas emissions and focus on the ...
Can Pollution Tax Rebates Protect Low-Wage Earners? Journal of Environmental Economics and Management (2013)
Pollution taxes are believed to burden low-income households that spend a greater than average share of income on pollution-intensive goods. Some proposals offset that effect by returning revenue to low-income workers via reduced labor tax. ...
Introduction Distributional Aspects of Energy and Climate Policies (2013)
We introduce and summarize the ten chapters of the 2013 book we edited called "Distributional Aspects of Energy and Climate Policies". In particular, the chapters examine policies that would “price” carbon emissions or otherwise seek ...
Does the Indexing of Government Transfers Make Carbon Pricing Progressive? American Journal of Agricultural Economics (2012)
We analyze both the uses side and the sources side incidence of domestic climate policy using an analytical general equilibrium model, taking into account the degree of government program indexing. When transfer programs such as ...