Speaker: Associate Professor Haoying SUN (University of Kentucky Gayton School of Business)
Host: Assistant Professor Zhang Anzhou (Li Anmin Economic Research Institute, Liaoning University)
Guest introduction: Professor You Yu (Li Anmin Economic Research Institute, Liaoning University)
Time: May 17, 2023 (Wednesday) 14:00-15:30 (Beijing time)
Online Venue: Tencent Meeting (Meeting ID: 300 7551 6895)
Language: Mandarin
Abstract：As the urgency of addressing climate change continues to increase, national, state, and local governments are increasingly willing to offer incentives to consumers who purchase innovative durable products that have smaller environmental footprints. We identify the trade-off between current adoptions and the development of improved technology that arises when governments offer such incentives, which typically take the form of either rebates or tax credits. We study two types of rebate structures: a short-term rebate that has a large cash value but is available for only a relatively short time window and a long-term rebate that has a lower cash value but is available for a longer time window. The short-term rebate certainly speeds up the adoption rate, but this may also discourage manufacturers from investing in technological innovation that will lead to future product improvements. For a given budget constraint, a long-term rebate avoids this pitfall but may also lead to fewer total adoptions. Using a durable goods framework, we explore the conditions under which the total environmental benefit is larger when the government offers a short- versus long-term rebate. We also show that the choice of the rebate structure derived from having a higher adoption rate might lead to a lower total environmental benefit.
About the speaker: Sun Haoying, associate professor of the Gayton School of Business at the University of Kentucky, and doctor of the University of Texas at Austin. The main research fields are Industrial organization, operation management, marketing, etc. Many papers have been published in top international journals such as Production and Operations Management, OMEGA International Journal of Management Science, Journal of Consumer Psychology, Journal of Marketing Behavior, etc. In terms of international academic influence, her representative achievements were awarded the Best Paper Award in 2022 by the OMEGA-International Journal of Management Science (Chinese Academy of Sciences, Zone 1, Impact Factor 8.67). She served as the deputy editor in chief of Decision Sciences, an international first-class journal in management, and the editorial board member of Production and Operations Management, an international top-level journal in the field of operations management, He was invited to serve as the chairman of the branch of manufacturing and service industry operation management and supply chain management at the 2022 annual meeting of the American Operations research and Management science Society (INFORMS).
