We characterize optimal firm-specific emission tax rates, and optimal firm-specific emission standards, and provide intuitive explanation on differential treatments. We show that there is a unified framework for deriving firm-specific policy measures. When firms are identical, the optimal policy...

Through a series of experiments, we measure the marginal damage of emissions near Atlanta using a sophisticated integrated assessment model. The marginal damages of sulfur dioxide (SO2) are driven by proximity to downtown Atlanta; emissions produced closer to the city lead to higher exposures and...