ABSTRACT
Policy instruments not only cause different allocative effects but also impose different financial burdens for polluters, victims, and society. The distribution of costs is distinct and thus linked to concepts of rights (see Chapters 3 and 8) and to the politics of policymaking. In this chapter, we focus on two kinds of cost distribution: first, among polluters, victims, and society, and then among the polluters themselves before we address the effects on income distribution in general.
