Research 

Publications

Alexander Munson and Han Yan (2017), Catching the elusive herder: A second look at herding in heterogeneous samples, Int. J. Financial Markets and Derivatives, Vol. 5, No. 2-4, 140–153.

Han Yan (2018), Capital Allocation Methods in Financial Institutions—A Review and Comparison”, Proceedings of the International Conference on Innovation & Management, 387-392

Working Papers

1. Decarbonizing homes: Heat Pump Adoption Under Natural Gas Restrictions in California [Job Market Paper; Finalist, 46th IAEE International Conference Best Student Paper Award Competition]

The U.S. government's push for net-zero emissions has accelerated the transition toward electrified homes, heat pump adoption, and natural gas restrictions. California, at the forefront of these efforts, faces a particular challenge as natural gas remains a key source for space heating, coupled with high electricity prices. While these regulations align with environmental goals, they raise concerns about increased energy costs for consumers and potential strain on the power grid. This study develops a structural model to analyze the impact of natural gas restrictions and heat pump adoption on consumer choices, welfare, and the broader implications for effective carbon mitigation policies. I assess the impact of natural gas restrictions on household energy usage patterns, examine the policy’s social costs, and evaluate the effectiveness of financial incentives in reducing potential consumer burdens. Results indicate that, although policy incentives promote heat pump adoption, they are insufficient to fully offset welfare losses. In the cooling season, a rebound effect leads to increased energy use, but the expenditures still decline due to efficiency gains. In contrast, no rebound effect is observed in the heating season, where high electricity prices cause welfare losses despite efficiency improvements and available rebates.

2. A Pathway towards Energy Transition: Urbanization and Clean Fuel Adoption in Chinese Homes [Revise and Resubmit by Energy Economics]

The transition from traditional cooking fuels to cleaner alternatives is essential for addressing environmental and public health concerns in developing countries. Economic growth and increasing urbanization play a critical role in influencing households' cooking fuel choices by improving access to utility-scale distribution of commercial fuels. Using data from the China Family Panel Study (CFPS), this study develops a structural model based on an indirect utility function to evaluate the impact of various factors—such as fuel prices, household demographics, internal migration, and infrastructure expansion—on cooking fuel preferences. Unlike previous research, this paper leverages data on energy pipeline length and built-up area to measure the extent of urbanization and to conduct counterfactual policy simulations. These simulations assess the impact of household registration reforms, which affect internal migration, on residential energy choices, as well as the influence of policy interventions on natural gas prices and infrastructure on household welfare. The findings reveal that increased internal migration and infrastructure development substantially enhance the likelihood of households adopting cleaner cooking fuels.

3. Heat Pumps and Low-Carbon Subsidies: A Closer Look at Income-Level Disparities  (With Kenneth Medlock) [Draft Available Upon Request]

This study investigates how household income and other demographic, economic, and housing factors shape heat pump adoption in the United States during a period of policy-driven electrification. Using household-level panel data from the American Housing Survey (2015–2023), the analysis examines adoption patterns alongside expanding federal incentives for clean heating technologies. Adoption remains disproportionately concentrated among middle- and upper-income households, with lower-income households facing persistent barriers such as high upfront costs and limited financing access. To explain these disparities, the study develops a dynamic structural framework in which households make an irreversible adoption decision by weighing installation costs against discounted future energy savings. Reduced-form estimates show that income strongly predicts adoption, though with diminishing marginal effects. The findings highlight the need for equity-oriented policy design to ensure that the environmental and economic benefits of electrification are accessible across all income groups.

4. The Grid-Household Feedback Loop: How Renewable Energy Thresholds Dictate Electrification’s Climate Payoff [Draft Available Upon Request]

This study examines how renewable energy–driven reductions in electricity prices influence residential heating choices and natural gas consumption in the United States. Using a discrete–continuous choice model applied to household-level data, I find that a 10\% decrease in electricity prices increases heat pump adoption by 13.4\%, leading to a reduction of 1.134 trillion BTU in direct natural gas use. I further identify a price–income interaction, with higher-income households responding more strongly to electricity price changes in adoption decisions. The climate benefits of this transition, however, depend critically on the power sector’s generation mix. By linking projected household electricity demand to evolving grid composition, the study emphasize the need to integrate decarbonization pathways when assessing net emissions impacts, particularly in fossil fuel–dependent regions. This framework underscores renewable energy’s dual role in lowering electricity costs to accelerate electrification and shaping its ultimate climate effectiveness.

Work in Progress

1. The Loss of the Iron Rice Bowl-The Late 1990s Layoffs Wave and Intra-household Bargaining in China

2. A Study about Creating a Deep Liquid Natural Gas Market in China (With Kenneth Medlock)

3. From Importer to Exporter: The Macroeconomic Effects of U.S. Energy Trade Shocks (With Kenneth Medlock)