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Table 2 The effect of the carbon tax on CO2 emissions (difference-in-differences estimation)

From: Does a Carbon Tax Reduce CO2 Emissions? Evidence from British Columbia

  Dependent variable: log(Emissions)i,t
Total Stat. Energy Transportation Fugit. (exempt) Industry Agriculture Waste
Carbon Tax i,t − 0.009 0.020 − 0.047*** − 0.044 − 0.052 − 0.485* 0.032
  (0.008) (0.015) (0.010) (0.045) (0.046) (0.231) (0.087)
log(Emiss)i,t-1 0.809*** 0.834*** 0.778*** 0.745*** 0.680*** 0.318*** 0.651***
  (0.051) (0.053) (0.060) (0.100) (0.093) (0.064) (0.178)
log(Pop) i,t − 0.068 − 0.041 − 0.103** − 1.566 0.464 0.475 0.421
  (0.058) (0.111) (0.035) (1.223) (0.303) (0.522) (0.472)
log(GDP) i,t 0.282*** 0.263*** 0.405** 0.902 − 0.132 0.376 − 0.028
  (0.051) (0.067) (0.131) (0.668) (0.317) (1.108) (0.777)
Eqbm. Tax Coef − 0.048 0.123 − 0.211*** − 0.173 − 0.164 − 0.711* Pct. Impact
0.092
Eqbm. Se (0.044) (0.093) (0.038) (0.214) (0.131) (0.28) (0.252)
  − 1% 2% − 5%*** − 4% − 5% − 38%** 3%
Pct. Impact Se (1%) (1%) (1%) (4%) (4%) (14%) (9%)
Pct. Eqbm. Impact − 5% 13% − 19%*** − 16% − 15% − 51%*** 10%
Pct. Eqbm. Impact Se (4%) (11%) (3%) (18%) (11%) (14%) (28%)
Observations 260 260 260 260 260 260 260
R2 (within) 0.717 0.693 0.768 0.690 0.497 0.113 0.427
F Statistic (df = 4; 221) 140.04*** 124.93*** 182.49*** 122.93*** 54.54*** 7.05*** 41.21***
  1. Equilibrium impact corresponds to the contemporaneous tax impact scaled by the autoregressive coefficient. The estimated percentage (Pct) change for the dummy variable moving from 0 to 1 is given by 100 \(\times\) (exp(\(\widehat{\beta }\))-1). Standard errors shown in parentheses, obtained using the delta method for the equilibrium impact and percentage impact
  2. *p < 0.05, **p < 0.01, ***p < 0.001