Projected Changes in Temperature and Precipitation Extremes over China as Measured by 50-yr Return Values and Periods Based on a CMIP5 Ensemble

Future changes in the 50-yr return level for temperature and precipitation extremes over China's Mainland are investigated based on a CMIP5 multi-model ensemble for RCP2.6, RCP4.5 and RCP8.5 scenarios. The following indices are analyzed： TXx and TNn （the annual maximum and minimum of daily annual maximum consecutive 5-day precipitation） and CDD maximum and minimum surface temperature）, RX5day （the （maximum annual number of consecutive dry days）. After first validating the model performance, future changes in the 50-yr return values and return periods for these indices are investigated along with the inter-model spread. Multi-model median changes show an increase in the 50-yr return values of TXx and a decrease for TNn, more specifically, by the end of the 21st century under RCP8.5, the present day 50-yr return period of warm events is reduced to 1.2 yr, while extreme cold events over the country are projected to essentially disappear. A general increase in RX5day 50-yr return values is found in the future. By the end of the 21st century under RCP8.5, events of the present RX5day 50-yr return period are projected to reduce to 〈 10 yr over most of China. Changes in CDD-50 show a dipole pattern over China, with a decrease in the values and longer return periods in the north, and vice versa in the south. Our study also highlights the need for further improvements in the representation of extreme events in climate models to assess the future risks and engineering design related to large-scale infrastructure in China.

Does the EVA valuation model explain the market value of equity better under changing required return than constant required return?

Through the Economic-Value-Added(EVA)valuation model,the expected market value of equity can be determined by adding the book value of equity with the present value of expected EVAs under the assumption of constant required return and constant return on equity.The equation of EVA valuation model has taken its shape under the assumption of constant required return and constant return on equity.However,a large body of empirical evidence indicates that required rate of return never remain constant.The EVA-valuation model formulated under constant required return cannot be implemented under the scenario of changing required return.In this study,we explored whether the EVA valuation model could be implemented under changing required return by making any changes in the model and found that it could be implemented under the scenario of changing required return by replacing the book value of the equity of the existing model with the present value of required earnings or normal market earnings.We further examined whether the explanatory ability of the EVA valuation model under the assumption of changing required return is better than that of the valuation model under the assumption of constant required return.Relative information content analyses were conducted by considering sample of the intrinsic value of equities determined by valuation models and the market value of equities of 69 large-cap,88 mid-cap,and 79 small-cap companies.The results showed that the EVA-based valuation model with changing normal market return outperformed the EVA-based valuation model with constant required return.

The Relative Impact of Regional Scale Land Cover Change and Increasing CO_2 over China

A series of 17-yr equilibrium simulations using the NCAR COM3 (T42resolution) were performed to investigate the regional scale impacts of land cover change andincreasing CO_2 over China. Simulations with natural and current land cover at CO_2 levels of 280,355, 430, and 505 ppmv were conducted. Results show statistically significant changes in majorclimate fields (e.g. temperature and surface wind speed) on a 15-yr average following land coverchange. We also found increases in the maximum temperature and in the diurnal temperature range dueto land cover change. Increases in CO_2 affect both the maximum and minimum temperature so thatchanges in the diurnal range are small. Both land cover change and CO_2 change also impact thefrequency distribution of precipitation with increasing CO_2 tending to lead to more intenseprecipitation and land cover change leading to less intense precipitation―indeed, the impact ofland cover change typically had the opposite effect versus the impacts of CO_2. Our results providesupport for the inclusion of future land cover change scenarios in long-term transitory climatemodelling experiments of the 21st Century. Our results also support the inclusion of land surfacemodels that can represent future land cover changes resulting from an ecological response to naturalclimate variability or increasing CO_2. Overall, we show that land cover change can have asignificant impact on the regional scale climate of China, and that regionally, this impact is of asimilar magnitude to increases in CO_2 of up to about 430 ppmv. This means that that the impact ofland cover change must be accounted for in detection and attribution studies over China.

On the feasibility of re-stimulation of shale wells

As a result of advances in horizontal comple- tions and multi-stage hydraulic fracturing, the U.S. has been able to economically develop several decades of worth of natural gas. However, a considerable concern has risen on the economic viability of shale gas development for reasons associated with the fast production declines as well as recent down-turns of natural gas prices besides rises in the costs of new technologies. Therefore, an economic analysis is required to investigate the profitability of the re- fracturing treatment of unconventional gas resources. Net present value of cash flows and internal rate of return are calculated for a range of gas prices considering 20 years of natural gas production from a typical unconventional shale gas reservoir. A systematic comparison is then accom- plished for three scenarios： （1） re-fracturing versus no re- fracturing, （2） combination of re-fracturing and drilling new wells, and （3） time-dependent re-fracturing treatment. Further, this paper incorporates the cost of re-fracturing treatment, the cost of drilling a new horizontal well, the water treatment cost, as well as the current and future price of natural gas in the model. The findings of this work would help the future re-stimulation development plans of the emerging unconventional shale gas plays.