FortisBC Inc. (FortisBC) Application for a Certificate of Public ...

Equation 3—Full
Dependent Variable: LOG(PPG)
Price per gram of marijuana
Included observations: 86
The variable IMPTD refers to whether the product
was imported or local. Among the provincial
dummies, British Columbia is the home province
and consequently does not appear on the list. The
provincial dummies are self-explanatory. Other
than British Columbia, those that do not appear
were excluded because of problems with a small
number of observations.
PUBLIC POLICY SOURCES, NUMBER 74
Appendix BCUC IR1 74.1
Variable Coefficient Std. Error t-Statistic Prob.
LN(WEIGHT) -0.2 0.0 -9.3 6.9E-14
CITY -0.33 0.14 -2.38 0.02
HG -0.59 0.25 -2.40 0.02
HYDRO 0.36 0.14 2.59 0.01
IMPTD 0.10 0.18 0.52 0.60
ALTA 0.06 0.20 0.31 0.76
SAS 0.16 0.16 0.98 0.33
MAN 0.26 0.20 1.30 0.20
ONT 0.12 0.16 0.76 0.45
QUE 0.21 0.25 0.82 0.41
NUN 1.1 0.2 5.8 1.E-07
NWT 0.53 0.25 2.12 0.04
NS 0.49 0.18 2.67 0.01
C 2.6 0.1 29. 3.3E-41
R-squared 0.66 Mean dependent var 2.25
Adjusted R-squared 0.60 S.D. dependent var 0.64
S.E. of regression 0.41 Akaike info criterion 1.18
Sum squared resid 11.9 Schwarz criterion 1.58
Log likelihood -36.9 F-statistic 10.9
Durbin-Watson stat 1.33 Prob(F-statistic) 2.4E-12
The points of interest in the provincial dummies
is that there is a substantial increase in price associated,
not surprisingly, with Nunavut and the
Northwest Territories, and a premium for Nova
Scotia. The rest of the provinces have prices not
distinguishable from those in British Columbia.
Overall, about 60 percent of the price variance is
explained, and of that, about 50 percent is explained
without provincial dummies.
The Fraser Institute 35 Marijuana Growth in British Columbia