Regulating Mismeasured Pollution: Implications of Firm Heterogeneity for Environmental Policy.

The article examines the first estimates of within-industry heterogeneity in energy and carbon dioxide productivity for industries spanning the entire U.S. manufacturing sector. It notes that many existing environmental regulations and standards apply uniformly across plants within an industry. It adds that detailed analyses of carbon tariffs have noted many challenges, ranging from legal ambiguity to information burdens.