Hi, I want to check whether there is a need to cluster my results. I asked this question before with no response.

I am doing a fixed effects panel regression regressing recycling rates on income, population density and method of recycling over 20 quarters for 310 local authorities in England. I predict observations from the same local authorities are related to each other

Am I correct to use the ANOVA 'loneway' command to check if I should be clustering my standard errors? Where acode is the code for each local authority.

loneway recycling acode

Do I understand correctly that this tells me the % of of the variation in recycling rates comes from between local authorities?
And if this is high there is a high correlation of recycling rates due to local authority specific changes?

Thank You