Greenhouse gas economics

US researchers use either the top-down or bottom-up approach to determine the economic costs of international greenhouse gases control compliance. The top-down approach uses key economic indicators such as the GDP, energy prices and technological progress to arrive at compliance costs, while the bottom-up approach relies on the use of micro-factors, such as the use of energy-effiecient technologies to arrive at compliance costs. A top-down estimate of international greenhouse gas control compliance puts a price of $173 per ton of carbon for the domestic trading permit price, while a bottom-up approximation places the domestic trading price at $50 per ton.