Table 9. How many times stronger would the marginal effect of an increase in carbon price be if each country’s education quality were calibrated to match Finland’s?

||Note: value o|f 1 implies no<br>is indi|difference in<br>cated for a dif|marginal effec<br>ference from 1|t and statistical<br>not 0|significance|
|---|---|---|---|---|---|---|
||Scenario 1a:<br>supp|Same skills b<br>ly due to highe|ut higher elast<br>r education qu|icity of skill<br>ality|Scenario 1b:<br>and higher<br>skills sup<br>higher educ|Higher skills<br>elasticity of<br>ply due to<br>ation quality|
||Emissions|Output|Skills|Wage gap<br>(log diff.)|Emissions|Output|
|Average of<br>ratios|1.0105**<br>(0.0142)|0.9922*<br>(0.6113)|1.1001***<br>(0.0168)|<br>0.8827***<br>(0.0184)|1.1415***<br>(0.1225)|1.0194<br>(2.5202)|
|Belgium|1.0038***<br>(0.0036)|0.9538*<br>(0.9176)|1.0573***<br>(0.0043)|0.9045***<br>(0.0158)|1.0835***<br>(0.0677)|0.8808*<br>(3.4765)|
|Czech|1.0059***|0.9888*|1.0814***|0.8854***|1.119***|1.0446|
|Republic|(0.0045)|(0.6202)|(0.0058)|(0.0115)|(0.096)|(2.6973)|
|Denmark|1.005***<br>(0.0044)|1.2645<br>(8.4159)|1.0769***<br>(0.0054)|0.878***<br>(0.0173)|1.1118***<br>(0.09)|2.1999<br>(35.522)|
|Spain|1.0144***<br>(0.009)|0.9386***<br>(0.0962)|1.1698***<br>(0.0116)|0.8334***<br>(0.0249)|1.2513***<br>(0.2169)|0.8472***<br>(0.4765)|
|Estonia<br>Finland|1.0036***<br>(0.0033)<br>1|0.9855*<br>(0.1346)<br>1|1.0657***<br>(0.0044)<br>1|0.8785***<br>(0.0125)<br>1|1.0939***<br>(0.0727)<br>1|1.0061<br>(0.5539)<br>1|
|France<br>United|1.0122***<br>(0.009)<br>1.0015***|0.9255***<br>(0.211)<br>0.9959*|1.1263***<br>(0.0106)<br>1.0754***|0.8794***<br>(0.0262)<br>0.7654***|1.1903***<br>(0.1729)<br>1.0963***|0.7487***<br>(1.1116)<br>1.0212|
|Kingdom<br>Greece|(0.0023)<br>1.0704**|(0.1794)<br>0.9784|(0.0037)<br>1.2655**|(0.033)<br>1.0369|(0.0702)<br>1.3429**|(0.7252)<br>0.8706**|
|Italy|(0.2049)<br>1.0216***|(0.2141)<br>0.9413***|(0.2401)<br>1.1937***|(0.2355)<br>0.8765***|(0.3816)<br>1.2851***|(0.3832)<br>0.8617***|
|<br>Netherlands|(0.0089)<br>1.001***|(0.0819)<br>0.9977*|(0.0126)<br>1.0124***|(0.0067)<br>0.9784***|(0.2512)<br>1.0182***|(0.4021)<br>1.0027|
|Norway|(0.001)<br>1.0046***|(0.1256)<br>1.091|(0.0011)<br>1.0374***|(0.0038)<br>0.9661***|(0.0149)<br>1.0575***|(0.3951)<br>1.3577|
|Poland|(0.0043)<br>1.0045***|(3.4195)<br>0.8964***|(0.0046)<br>1.1148***|(0.0094)<br>0.775***|(0.0546)<br>1.1594***|(12.061)<br>0.6122***|
||(0.0041)|(0.4146)|(0.0064)|(0.0217)|(0.1202)|(1.9485)|
|Slovak|<br>1.0038***|<br>0.9855*|<br>1.0656***|<br>0.8832***|<br>1.094***|<br>1.0067|
|Republic<br>Slovenia|(0.0033)<br>1.0054***|(0.136)<br>0.9399***|(0.0044)<br>1.1593***|(0.0108)<br>0.7005***|(0.0729)<br>1.219***|(0.5598)<br>0.8307***|
||(0.005)|(0.1116)|(0.0077)|(0.0339)|(0.165)|(0.5068)|

_Implied changes in marginal effects due to changes in education quality from 2000 to 2012_ The impact of education quality on the marginal effects of an increase in carbon prices was also demonstrated by estimating the impacted of the changes in education quality implied between PISA 2000 and PISA 2012. We compared the marginal effects of a carbon price increase between the original skills cost function estimated using PISA 2012 and a skills function estimated using 27