【Session 123 of Climate Change Response Forum】 Professor Yang Zili with State University of New York at Binghamton Attended the Forum

In the morning of November 25, 2020, Session 123 of Climate Change Response Forum was held on the conference platform offered by Tencent. Professor Yang Zili with State University of New York at Binghamton was invited to present core achievements found in his monograph The Environment and Externality. Audience includes all teachers and master students with the School of Low Carbon Economics.


Professor Yang introduced the background and motive behind The Environment and Externality. His purpose is to create a systematic analytical frame and operation algorithm to solve externality. He used similes and metaphors to explain the definition of environment externality and the process of mapping the internal structure by imaging the externality. Professor Yang explained the models used in the book, including Static Environmental Externality Efficiency (SEEE) model and Static Environmental Externality Nash (SEEN) model. Then Professor Yang presented core content of the book, namely the method of determining allocation weight. For this question, Professor Yang established the triangular relationship among Nash bargaining solution, social optimum and Lindahl equilibrium without transfer; and created the model for solving environment externality, providing an important tool for research concerning the environment and externality.


After the lecture, Professor Xue Jinjun, a special-term professor with the University and a professor with Nagoya University had discussions with Professor Yang on certain points of the lecture. Professor Xue said that the RICE model developed by Professor Yang had its practical value.



About the lecturer: Yang Zili, economics professor with State University of New York at Binghamton, and Doctor of Economics from Yale. His research fields include resource and environmental economics, energy economics, climate change economics, applied game theory, etc. Professor Yang, in conjunction with William D. Nordhaus, a laureate of Nobel Memorial Prize in Economic Sciences 2018 and a professor with Yale, created the Regional Integrated Climate-Economy (RICE) model and published it on American Economic Review and other prestigious journals. RICE model and several of its variants have been widely used in the reports of Intergovernmental Panel on Climate Change (IPCC). Professor Yang independently developed the research method that combines the concepts and algorithm of game theory numerical solution with climate economic comprehensive evaluation model. He is the first researcher that introduces non-cooperative game solution and cooperative game solution into large comprehensive evaluation model in the world, and the main designer of the EPPA model released by the energy laboratory of MIT in 1990s.