Yang Gao

Yang Gao

  yang_gao at ucsb dot edu

  2041 North Hall, UCSB

  CV

Welcome! I am a final year Ph.D. candidate in Economics at the University of California, Santa Barbara. My research interests lie in Macroeconomics and Environmental Economics, with related interests in Firm Dynamics and Finance.

My research investigates the macroeconomic and welfare implications of climate change and climate policies. In particular, I examine how climate policies interact with frictions in the production sector and financial markets, aiming to uncover their true efficiency, distributional, and aggregate impacts. My methodological approach combines econometric analysis of micro- and macro-level data with theoretical investigations and quantitative macroeconomic modeling.

I am on the job market in the 2025-26 academic year.

Education

University of California, Santa Barbara
Ph.D. in Economics, Expected 2026
Committee: Peter Rupert (Chair), Yueyuan Ma, Gregory Casey

Renmin University of China
B.A. in Economics, 2019

University of California, Davis
Exchange Student, Sep 2017 - June 2018

Job Market Paper

Beyond Emissions: The Implications of Capital Misallocation on Optimal Carbon Tax (click to see the latest version!)
(Solo Authored)

Abstract: I study optimal carbon taxation when capital is misallocated across firms. Using data on U.S. public firms, I document that firm-level revenue-based emissions intensity is negatively correlated with the return to capital, indicating that capital is misallocated toward dirty firms. Embedding this pattern into a misallocation framework, I demonstrate a reallocation mechanism: a carbon tax can reduce resource misallocation and boost aggregate productivity by reallocating capital from dirty to clean firms. I develop a dynamic, general-equilibrium climate-economy model with heterogeneous firms and tangibility-dependent financial frictions: dirty firms hold more tangible assets and face looser collateral constraints, attracting excess capital. Calibrated to firm-level balance sheet and emissions data, the model implies that a carbon tax raises aggregate productivity over a wide range of tax rates. The allocative efficiency gains generate welfare improvements beyond those from internalizing emissions, increasing the optimal carbon tax by 75% relative to a benchmark without pre-existing misallocation. Consistent with the same mechanism, removing financial frictions to equalize returns further reduces economy-wide emissions intensity.

Working Paper

Energy Efficiency Dynamics and Climate Policy
(with Gregory Casey and Peter Kruse-Andersen)
Revise and resubmit at the Journal of the Association of Environmental and Resource Economists

Work In Progress

Macroeconomic Evidence on Substitution Between Clean and Dirty Energy
(with Gregory Casey and Peter Kruse-Andersen)
Invited to submit a shorter version to AEA Papers & Proceedings

Research Experience

Research Assistant for Prof. Tamma Carleton, Prof. Ishan Nath, Prof. Levi Crews, Feb 2021 - Sep 2022
Research Assistant for Prof. Christopher M. Meissner, Apr 2018 - Jul 2018

Selected Awards and Honors

  • Dissertation Summer Fellowship, UCSB 2024
  • Economics Graduate Research Quarter Fellowship, UCSB 2024
  • Best Second-Year Research Paper Award, UCSB 2022
  • Gretler Foundation Fellowship, UCSB 2022
  • Distinction in Ph.D. Preliminary Qualifying Examination - Macroeconomics, UCSB 2020
  • National Scholarship (Top 0.2% Nationwide - Highest Honor for Chinese Undergraduates), RUC 2018
  • Academic Perfection Recognition (All A+'s in 9 Courses), UCD 2018
  • Chancellor's Exchange Student Scholarship, RUC 2017
  • Academic Scholarship, RUC 2016, 2017

Teaching Assistant Experience

  • ECON 204C. Macroeconomic Theory III (Ph.D. Level), S2021
  • ECON 101. Intermediate Macroeconomic Theory (Head TA), W2022, S2022, W2023, S2023
  • ECON 101. Intermediate Macroeconomic Theory, W2021, W2025, S2025, F2025
  • ECON 180. International Trade, F2021, F2022, F2023
  • ECON 181. International Finance, W2024
  • ECON 2. Principles of Economics (Macro), W2020, S2020
  • ECON 10A. Intermediate Microeconomic Theory, F2019
  • PSTAT 109. Statistics for Econ, F2020