On the morning of November 24, 2020, Professor Yongyang Cai from Ohio State University was invited to give an online academic report entitled "Climate Policy under Spatial Heat Transport: Cooperative and Noncooperative Regional Outcomes". The report was presided over by Professor Liao Hua, and more than 30 teachers and students from the center participated in the report.

In this report, Professor Cai first introduced the necessity of considering the space heat transfer mechanism in the climate change assessment model, and pointed out that the polar amplification effect caused by climate change has different effects on regional temperature rise, and the temperature rise in the north of the world will be significantly greater than that in the tropics, and the southern region. In this context, Professor Cai introduced the DIRESCU (Dynamic Integrated model of Regional Economy at Spatial Climate under Uncertainty) model from the aspects of climate module, economic module, cooperative and non-cooperative games, and dynamic stochastic general equilibrium, and explained the heat transfer in detail such as how does the mechanism affect the occurrence probability of a climate change critical point event, the design of the climate adaptation function, and how to introduce randomness into the model. Finally, the report points out that ignoring the effects of polar amplification, sea level rise, and climate adaptation will cause carbon tax estimates to be biased. The carbon tax is lower in the non-cooperative scenario than in the cooperative scenario, and the carbon tax in the north of the world is higher than that in the tropical and southern regions. After the lecture, everyone exchanged views with Professor Cai on the design and parameter estimation of the climate loss function and the specific details of uncertainty modeling technology for nearly an hour.

Professor Yongyang Cai received his Ph.D. degrees from Stanford University and Fudan University and is currently working at Ohio State University. He also served at Stanford University and the University of Chicago. He mainly engaged in climate change economics, computational economics, economics and multi-system comprehensive modeling, resource and environmental economics, etc. He initiated a number of numerical methods for solving dynamic stochastic general equilibrium and dynamic stochastic non-cooperative games, and applied to solve optimal or game problems in dynamic stochastic systems of economics, such as carbon pricing under economic and climate risks and uncertainties problem. His current research includes the establishment of comprehensive modeling analysis of dynamic regional economy, food, energy, water resources and other systems. The research results were published in famous journals such as Journal of Political Economy, PNAS, Nature Climate Change, Operations Research, etc. He presided over and participated in a number of major projects.