The Gram-Charlier Expansion (GCE) of the Gaussian density under GARCH framework has been widely used to model the conditional dynamic higher moments. Compared with other generalized distributions, GARCH-GCE models describe the dynamic equations of conditional skewness and kurtosis in a more direct way. While GCE function is not always positive, it is often squared and normalized in empirical studies. However, little attention has been paid to the fact that the higher moments of squared-GCE function are different from the original GCE function.

We propose a closed-form pricing formula for the Chicago Board Options Exchange Volatility Index (CBOE VIX) futures based on the classic discrete-time Heston–Nandi GARCH model. The parameters are estimated using several sets of data, including the S&P 500 returns, the CBOE VIX, VIX futures prices and combinations of these data sources. Based on the resulting empirical pricing performances, we recommend the use of both VIX and VIX futures prices for a joint estimation of model parameters.

The recent Collective Forest Tenure Reform in China has started the process of devolving forest management rights from village collectives to households since 2003. In this paper, we study the impact of the reform on rural energy consumption. Devolving forest tenure improves farmers' access to forest products on their newly acquired forestland, and is therefore expected to increase farmers' fuelwood consumption. The reform also allows farmers to adopt some revenue-enhancing forest technologies which may lead to energy switching in farmer households.

Does public transportation reduce vehicle congestion? Using a regression-discontinuity framework, we examine the effect of six subway openings on short-run congestion in Beijing between 2009 and 2015. We find that vehicle congestion drops sharply immediately after new subway openings. In our central specification, each of the subway openings decreased delay times by an average of 15% in the short run over the city of Beijing.

This study investigates local residents’ attitudes toward shale gas exploitation in China through interviews of 730 residents of Sichuan Province and explores determinants of their support or opposition. It is the first study in China to explore local residents’ attitudes on this subject and we identify underlying factors contributing to such attitudes, including energy poverty, environmental awareness, and risk and benefit perceptions. The results show that the respondents are generally supportive of shale gas development. Fewer than 20% of them report opposing such development.

In 2014, China became the world’s third country to realize shale gas commercial development, following the United States and Canada. So far, there has been a lack of comprehensive discussion on risk perception related to shale gas in China. This paper aims to understand Chinese residents’ risk perceptions toward shale gas exploitation. A survey was conducted with 730 interviewed participants in two counties of Sichuan province (Weiyuan County and Gong County).

International environmental agreements (IEAs) are considered an important way to increase the efficiency of emission abatement and climate change mitigation. This paper uses a game-theoretic model to investigate the effect of possible tipping events, which would bring catastrophic and irreversible damage to ecological systems and human societies, on individual countries’ emission decisions and on the scale of participation in IEAs that would maintain stability of the IEA.