Topic: On effects of present-bias on carbon emission patterns towards a net zero target

Lecturer: Prof. Zhu Jinxia, University of New South Wales

Time: April 1, 2026, 9:00, UTC+8

Venue: Tencent Meeting, Meeting ID: 286 553 944

Biography: Zhu Jinxia is an Associate Professor in the School of Risk and Actuarial Studies at the University of New South Wales (UNSW), where she also serves as Director of the Undergraduate Actuarial Programs. Her research focuses on optimal control in insurance and finance, as well as risk theory and modelling in these areas. Her current work centers on modelling present-biased behavior and model uncertainty in control and optimization. She is also applying machine learning techniques to credit default modelling and investigating optimal control and modelling issues in health insurance. Her research has been published primarily in leading journals across operations research (SIAM Journal on Control and Optimization, European Journal of Operational Research), stochastic processes and applied probability (Stochastic Processes and their Applications, Journal of Applied Probability), and actuarial science (Insurance: Mathematics and Economics, ASTIN Bulletin, Scandinavian Actuarial Journal). She is currently supervising PhD students and welcomes inquiries from prospective candidates.

Abstract: This talk examines how a decision-maker should optimally use a fixed carbon-emission budget over time when their preferences are present-biased and time-inconsistent. The framework applies to both individuals and firms that must balance short-term production incentives with long-term emission constraints. Using a stochastic control approach, we analyze how present bias, sustainability awareness, and carbon taxation shape optimal emission paths. Our numerical results show that stronger present bias leads to excess short-term emissions, while greater sustainability awareness significantly reduces overall emissions. We also demonstrate that carbon taxes are effective at low levels but exhibit diminishing impact once the tax rate exceeds a critical threshold.

Rewritten by: Mei Mengqi

Edited by: Li Huihui, Li Tiantian

Source: School of Mathematics and Statistics