Emission Reductions Post Cap-and-Trade Implementation
Generalized mixed-effects model
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estimate the carbon emission and carbon intensity before and after
implementing cap-and trade, stratified by different industrial sectors.
• We performed the PROC MIXED procedure using SAS version 9.4 (SAS Institute,
Cary, NC, US) to estimate the effect of selected factors on carbon dioxide
emission.
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E[Yij Xij] = Po + B₁ * Cap&Trade₁j + ß2 * state; + ẞ3 * year; + ẞ4 * state¡ *
ß3 ß
year; ++ẞ5 * I(Sector); + ß6 * GDP; + ẞ7 * state; * I(Sector)i
Cap&Tradejj
⚫i: industry sectors; j: time in years since the baseline year (from 1 to 6);
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E[Y_ij |X_ij]: the expected carbon dioxide emission conditioned on covariates X;
Bo: the intercept for the effect; B1 to B6 are estimated coefficients for the
marginal effects on the emission derived from maximum likelihood method.
Cap&Trade are dummy variable, state are categorical variable for the three
states/provinces, and I(Sector) is indicator variable for the six sectors.View entire presentation