Emission Reductions Post Cap-and-Trade Implementation

Principal component analysis We adopt principal component analysis to forecast CO2 emissions for 29 sectors in CA, GD, and JS, respectively. • We divide data sets into two categories: the first contains economic variables, and the second includes CO2 emissions of detail industrial sectors. The economic variables include value added output of each industrial sector in the i region - where i denotes California, JS, and GD. The CO2 emissions variables include emissions from each of the 29 sectors.

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