Table 3.

Heterogeneous effects by allowance allocation rules

	Total emissions		Emission intensity
Dependent variable	(1)	(2)	(3)	(4)
Announcement	–0.083**	–0.120*	–0.047	–0.068
	(0.039)	(0.063)	(0.033)	(0.073)
Trading	–0.342***	–0.399**	–0.367***	–0.436***
	(0.098)	(0.147)	(0.076)	(0.096)
Trading × rate	0.212***	0.284*	0.319***	0.414***
	(0.067)	(0.140)	(0.079)	(0.086)
Observations	2,416	2,416	2,416	2,416
R-squared	0.055	0.207	0.102	0.233
Firm FE, year FE	Y	Y	Y	Y
Province trend	N	Y	N	Y
Industry trend	N	Y	N	Y

All dependent variables are in natural logarithms. Announcement equals one for the regulated firms during the announcement period (2011 to 2012). Trading equals one for the regulated firms during the trading period (2013 to 2015). Rate equals one if the regulated firms are categorized into the rate-based group. SEs in parentheses are clustered at the industry level. ***, significant at the 1% level; **, significant at the 5% level; *, significant at the 10% level.