rdrobust dpfpositive pf\_1, c(0.895).

Here, rdrobust is the command to conduct an RDD estimation. The variable dapfpositive is an indicator that takes a value of one if the change in power factor is strictly positive, while pf\_1 is the power factor in the previous year. The last term, c(0.895), indicates that the cutoff *z* in our case is 0.895, implying that the firms with a power factor of 89% or below face the penalty, while the firms with 90% power factor and above do not.
