Description

Effect of Carbon tax on Emission

This solution contain results  in report form as arranged below:

Table of contents 

Table of contents 2

Introduction 2

2. Data 3
3. Methodology 3
4. Results 3
5. Conclusion 3

Introduction

The government of Ruritania wishes to decrease its carbon emissions, however, is uncertain, which policies ought to be used to attain this aim. To determine the effectiveness of a carbon tax, it conducted a pilot programme in 2020 which required a (treatment) group of firms to pay a carbon tax. This group was randomly selected from amongst companies in more carbon-intensive industries (agriculture, manufacturing and construction). No companies in the less carbon-intensive service industry were required to remit the carbon tax. To evade destructing their competitiveness in global markets, firms that had exported in 2019 were not needed to pay the tax. The tax rate was £100 per tonne of carbon emissions.

From the aforementioned, the aim of this small is to perform a binary logistic regression to ascertain the impact of carbon tax on emission levels using carbon emission dataset. The data section will provide overview of data presented for analysis. The methodology section will describe in details the formula of logistic regression used. The results section prevising results and analysis of findings to test if carbon tax. Last but not least, the conclusion section summarises results analysis and offer policy recommendation for government of Ruritania.

2. Data

Data and Variable

Carbon emission dataset was used to perform analysis.