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As climate change impacts residential life, people typically use heating or cooling appliances to deal with varying outside temperatures, bringing extra electricity demand and living costs. Water is more cost-effective than electricity and could provide the same body utility, which may be an alternative choice to smooth electricity consumption fluctuation and provide living cost incentives. Therefore, this study aims to identify the substitute effect of water on the relationship between climate change and residential electricity consumption.

This study identifies the substitute effect of water and potential heterogeneity using panel data from 295 cities in China over the period 2004–2019. The quantile regression and the partially linear functional coefficient model in this study could reduce the risks of model misspecification and enable detailed identification of the substitution mechanism, which is in line with reality and precisely determines the heterogeneity at different consumption levels.

The results indicate that residential water consumption can weaken the impact of cooling demand on residential electricity consumption, especially in low-income regions. Moreover, residents exhibited adaptive asymmetric behaviors. As the electricity consumption level increased, the substitute effects gradually get strong. The substitute effects gradually strengthened when residential water consumption per capita exceeds 16.44 tons as the meeting of the basic life guarantee.

This study identifies the substitution role of water and heterogeneous behaviors in the residential sector in China. These findings augment the existing literature and could aid policymakers, investors and residents regarding climate issues, risk management and budget management.

This chapter develops a neoclassical growth model of illegal immigration with imperfect substitutability between native and immigrant workers in production. We investigate analytically and/or numerically the effects of illegal immigration on the average capital stock in the host economy as well as on the wage, income, and asset holdings of native workers. Our findings indicate that the effects of an increase in illegal immigration on the average levels of capital, consumption, and income are positive. Moreover, by employing the normalization technique (e.g., Klump & de La Grandville, 2000), we examine the effects of a change in the elasticity of substitution between immigrant workers and natives for any given immigration ratio. These effects are in general ambiguous, because of the presence of two opposing forces: the efficiency and the distribution effects. Finally, we extend the model by separating the domestic workers into skilled and unskilled and study the impact on distribution of income and wealth. We show that illegal immigration may not necessarily make the distribution of wealth more unequal and unskilled labor worse off. This is because the end results depend on the elasticities of substitution between different types of labor. Thus, assuming erroneously that immigrants and natives are perfect substitutes could lead to results that are not only overestimated but also of the wrong sign.

This chapter examines the effects of Oportunidades, a conditional cash transfer program, on the allocation of time of household members in rural Mexico. I exploit the random placement of benefits across communities in the evaluation sample and the program's eligibility criteria and scheme of incentives to identify effects. The majority of Oportunidades benefits are linked to children's school attendance, implying a reduction in the price of schooling. I argue that changes in relative prices lead to substitution effects, whereas the (almost) unconditional nutritional transfer translates into an income effect. Findings show increases in schooling and reductions in children's participation in market and non-market work. Although the program does not seem to substantially alter adults’ time allocation, evidence suggests that adult women substitute for children's time in non-remunerated activities.

This paper aims to compare and analyze the effect of the dual-credit policy and product substitution rate on the automakers’ operational strategies under different production modes (e.g. centralized and independent), and further illustrate which production mode is more conducive to improving new energy vehicle (NEV) development.

The decision-making models for a centralized production mode where an integrated automaker produces both NEVs and fuel vehicles (FVs) and for independent production mode where an NEV automaker faces competition from a traditional FV automaker were formulated. The equilibrium solutions of each production mode were obtained by extreme value and game theory methods. The conclusions of the theoretical analysis were further verified with numerical analyses using IBM-MATLAB R2019a. Some management insights could be obtained by comparison analysis.

Under the dual-credit policy, an increase in the NEV credit trading price will always raise production quantity of NEVs, but only in an independent production mode where a higher trading price will also bring higher total profits to NEV automakers. In addition, only when the NEV credit trading price is high enough, a rising product substitution rate will be more favorable to NEV production and restrain FV production. Furthermore, an independent production mode is more favorable for the initial production of NEVs, but as each of the two vehicle types captures a certain amount of market share, a centralized production mode will be more conducive to the full replacement of FVs by NEVs.

The main contributions of this study include the formulation of decision-making models for FVs and NEVs in not only a centralized production mode but also an independent production mode. Moreover, this paper comprehensively analyzes how the dual-credit policy and product substitution relationship affect automakers’ production and pricing decisions. Then, the specific conditions under which each production mode is more conducive to NEV production and sales are summarized. The results proposed in this study provide scientific managerial insights for automakers and policy makers.

The purpose of this paper is to examine the actual legal effect of collective agreements by focusing on the litigation regarding the implementation of collective agreements in China where current literature on the topic is scarce.

This paper deploys both quantitative and qualitative methods to investigate the features of litigation regarding collective agreements. The judgments on collective agreement by people’s courts nationwide from 1 January 2014 to 31 December 2018 provide the primary empirical data. The intrinsic features of collective agreement disputes are investigated to delineate different sorts of theoretically presumed legal effect, namely contractual, normative and other (if any). A number of collective agreement templates and texts have been gathered and analysed to further explore the factors leading to collective agreement disputes. A dozen of labour law professionals, workers, scholars and trade union officials, were interviewed to verify the findings.

The number of collective agreement disputes is relatively small compared to the number of valid collective agreements or the volume of other labour disputes. This study found no litigation initiated by trade unions to claim a remedy against a violation of a collective agreement by an employer. However, a growing number of cases were filed by individual workers to complain about the terms and conditions of their individual employment agreements in contradiction to the existing collective agreement. These data do not mean that collective agreements lack problems or have no significance in action. A novel effect – a “substitution effect” – is evident in the existing labour litigations and relatively popular amongst employers, as they often refer to the collective agreement when a written individual agreement, as the mandatory document, is absent. The advent of substitution effect reflects a pragmatic view amongst Chinese labour law professionals, employers and workers.

Due to the recent establishment of the online judgments database, this study has focused on collective agreement litigation in people’s courts from 2014 to 2018, which is representative of the national trend of such disputes and thus provides valuable insights. Future studies should cover a wider time span and extend to the collective agreement disputes subject to labour arbitration to provide a fuller picture of the challenges and potential solutions.

By understanding the legal effect of collective agreements in reality, the legislature, workers and employers can act accordingly to enhance or empower it. The insignificant volume of both contractual and normative claims on collective agreements indicates the pressing need to inject something concrete into both substantive rights and the implementation mechanisms of collective agreements. The existence of substitution claims illustrates the room for further implementation of written individual agreements to reduce the need to borrow from collective agreements to fill the void left by the absence of individual agreements.

This study uniquely evaluates collective agreement disputes in China to seek their true legal effect, finding the substitution effect of collective agreements that was absent from the prior literature. The features of collective agreements are reflected in this work, together with public policy and theoretical implications.

Economists have, in the last 20 years, made many contributions to the study of the deterrent effect of sanctions on criminals — these are surveyed in Brief & Fienberg (1980), Blumstein & Cohen (1978), Tullock (1974), Palmer (1977) and Taylor (1978). A considerable amount of the empirical work has dealt with crime supply functions for specific types of crime. Surprisingly little attention has been given to the switching of criminals between crimes in response to differentials in deterrence. Only three empirical studies of this phenomenon have appeared: Heineke (1978), Holtmann & Yap (1978), Hakim et al. (1984). All of these use cross‐section US data for property crimes. Their findings are thus somewhat tentative given that they may not hold up in other national contexts. This paper seeks to remedy this gap by studying substitution behaviour for burglary, robbery and theft using 1981 data for the police force areas of England and Wales. We compare our results with those of American researchers and also examine the impact of substitution on the broad conclusions of the conventional non‐substitution model.

The purpose of this paper is to investigate Chinese farmers’ adaptation behavior in the context of the rising cost of labor in agriculture. As the cost of labor increases, farmers will either reallocate their budget to different inputs or change the structure of agricultural production to maximize profit.

The Rural Fixed Point Observation data set between 2004 and 2010 is employed in the empirical analysis of this study. Both the compensated and uncompensated demand elasticities with respect to wages are estimated by adopting the translog cost function and the profit function.

The results show that labor input will drop down significantly as a response to rising wages. Land, fertilizer and intermediate inputs are net complements of labor, whereas machinery appears to be net substitute for labor. In addition, the authors also separate the expansion effect from the substitution effect and find that farmers will shift to grain production with intensive use of fertilizer and from wheat and corn to rice as a response to the rising cost of labor.

This study adopts the classical household model to incorporate various adaptation behaviors of farmers into one framework and decomposes the total effect of the rising cost of labor on input demand into an expansion effect and a substitution effect, which provides a better understanding of farmers’ adaptation behavior.

Purpose – This chapter investigates the role of infrastructure aid to developing countries for determining the effect on national income and consumer welfare. The chapter further demonstrates the conditions for the Dutch disease effect by decomposing the output effects of infrastructure aid into the initial factor-saving effect, factor-substitution effect and nontraded good effect.

Methodology/approach – This chapter extends the Heckscher−Ohlin model to a 3×2 case with two traded goods and a nontraded good, and derives comparative static results on factor prices, the price of nontraded goods, foreign exchange rate, sectoral outputs, and national income and consumer welfare.

Findings – It is shown that for a recipient country, infrastructure aid to either the export or import sector necessarily raises national income and consumer welfare, whereas the same aid to the nontraded good sector does not affect national income but raises consumer welfare. Infrastructure aid may lead to a Dutch disease effect via its three effects on industrial outputs: the initial factor-saving effect, factor-substitution effect and nontraded good effect.

Research limitations/implications – This chapter considers infrastructure capital as a public input, but it is devoid of analysis of inter-industrial spillover effects that the infrastructure capital generates to other sectors.

Practical implications – This chapter reveals several aspects of infrastructure aid that the practitioners of aids must consider.