Upstream versus downstream implementation of climate policy
By: Erin T. Mansur
Contributors: National Bureau of Economic Research
Series: NBER working paper series -- working paper 16116; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 16116.
Publisher: National Bureau of Economic Research
Published: 2010
Place of publication: Cambridge, MA
Language: eng
Format: [electronic resource] /
Description: "This chapter examines the tradeoffs of regulating upstream (e.g., coal, natural gas, and refined petroleum product producers) versus regulating downstream (e.g., direct sources of greenhouse gases (GHG)).  In general, regulating at the source provides polluters with incentives to choose among more opportunities to abate pollution.  This chapter develops a simple theoretical model that shows why this added flexibility achieves the lowest overall costs.  I broaden the theory to incorporate several reasons why these potential gains from trade may not be realized--transactions costs, leakage, and offsets--in the context of selecting the vertical segment of regulation"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 7/13/2010.

Includes bibliographical references.

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Mode of access: World Wide Web.