Interpretation of coefficients, dependent variable in (%), independent variable in ln

Rex

New Member
#1
Hi,

I have a very simple question. I have the following equation. My dependent variable is CRES which is the share of renewables in a country's energy supply. My independent variables are log transformed, besides Kyoto which is a dummy variable.

CRES= β0 + β1lnGDP + β2Kyoto+ β3ln_oil_price

For my OLS regression I obtained a statistically significant effect for GDP which is 2,73***.
However, I dont know to interpret the coefficient. I know that usually having a linear-log model, an increase in x (GDP) by one percent is associated with an increase in y by (β1/100) units which would be (2,73/100).= 0,0273.

Does this interpretation still hold if CRES is in %?
Then, the economic significance of my effects would be rather small.

Thank you,Rex