Carbon Pricing with Regressive Co-benefits: [0.1cm] Evidence from British Columbia's Carbon Tax [0.35cm]

Figure 1 plots the baseline spatial distribution of the dependent variable and the main covariates over the Vancouver CMA, the most populated metropolitan area in the treated province of British Columbia. [...] 13 In the remainder of the paper, I regard SDID as my preferred method in order to estimate the effect of the 2008 BC carbon tax on air pollution co-benefits, as the methodology allows me to overcome the apparent violation of the parallel trends assumption in conventional TWFE-DID; nonetheless, I estimate my main regression and robustness checks using all three of TWFE-DID, SCM and SDID, in order. [...] The graphical repre- sentation of the regression analysis aids this line of interpretation: the DID ATT is indeed estimated by assuming that the outcome path of the treated units is parallel to the outcome path of the controls, thus the coefficient, τ̂ did = 0.393 is upward biased. [...] 28As the low-emissions transport mode is the sum of public transport and zero-emissions modes, I only report the results for public transport in the main text and present the aggregate low emissions and the sub-split for zero-emissions in Table C.1, and Table C.2. [...] Second, I retrieve the central estimate of the willingness to pay (WTP) to avoid a premature death from Health Canada (2021) and Chestnut and De Civita (2009)35, and multiply the mortality reductions estimated in the first step by the central estimate of the Value of a 35It must be noted that the reported estimate for the Value of a Statistical Life does not reflect directly the economic value of.