Inferring Carbon Abatement Costs in Electricity Markets: A Revealed Preference Approach using the Shale Revolution
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چکیده
Section III of the text discusses the method we use to calculate a coal price index. Here we report the regression results for each region (see Table A.1). We also show the national average for comparison. While the type of coal a power plant purchases may change in response to natural gas prices, we are concerned that the heterogeneity in coal transactions within a plant may also reflect noise. So, we construct a coal price index based on the average coal characteristics in a region as of January 2001. We then add the monthly fixed effects to the base price, thereby keeping the coal composition constant for a region. This coal price index in shown in Figure A.1.
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