Anthony Liu’s research focuses on two broad areas: climate change policy and the environment in developing countries. Some of his current work addresses carbon taxes and the unique properties that could make them attractive components of modern tax systems. Using a combination of analytical models and general equilibrium simulations, Liu has found that the cost of carbon taxes could be much lower than has been previously believed. Liu is also interested in pollution issues and the interactions between the environment and the economy in China, and has studied large-scale water treatment infrastructure in China.