Tuesday, November 13, 2012

A Few More Thoughts About California's AB32 and Carbon Cap & Trade

This Yale piece is quite good.  My recent AB32 webinar convinced me that there is great interest in the Cap & Trade field experiment that California is now launching.  The challenging issue for research nerds is that there is no control group and there will be general equilibrium effects!  In such a setting, how do we evaluate whether the experiment is a success or not?   What "double difference" do you plan to do to estimate the "average treatment effect"?    Nerds of the world, unite!  and start to think about these hard questions.