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]

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 Coming Soon]

Existing literature highlights significant inequalities in the distribution of subsidies for electric vehicles (EVs) and solar panels, with higher-income households benefiting disproportionately from these incentives. This study focuses on heat pump adoption to investigate whether similar disparities exist within subsidy programs aimed at promoting low-carbon technologies. 

Work in Progress

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

The large-scale reform of state-owned enterprises (SOEs) in China during the late 1990s to early 2000s caused significant socioeconomic disruptions, including a sharp rise in unemployment. Prior to the reforms, SOE jobs provided lifelong security, guaranteed pensions, subsidized healthcare and housing, and transferable employment opportunities for descendants. The sudden wave of layoffs dismantled these benefits, leaving many—particularly older, less-skilled workers—struggling with unstable incomes in the private sector or self-employment. This study investigates how income insecurity resulting from these layoffs influences intra-household bargaining dynamics, focusing on women’s roles in decision-making. 

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

China's transition toward a sustainable energy future places increased emphasis on natural gas to reduce coal dependency and align with low-carbon development goals. However, the seasonal variability of natural gas demand—peaking in winter due to residential heating needs—has led to challenges in balancing supply and demand, creating volatility in the market. This study investigates the role of storage in mitigating these imbalances and enabling the development of a liquid natural gas (LNG) market in China. By estimating storage requirements through the dynamics of production, consumption, imports, and exports, we also highlight the potential for intertemporal arbitrage. 

3. How Electricity Prices Shape Heat Pump Adoption? The Indirect Effects of Renewable Energy Integration