Cold air is denser that warm air, so putting it at the top allows the cold air to fall downwards, displacing any warmer air back towards the cooling element. It sort of maintains a certian degree of circulation and helps keep the temperature more even. If the cooling element was at the bottom, the cold air would just stagnate in the bottom, while warmer air might still be present near the top of the refrigerator.
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It is known that the hot air rises up in the air. The same thing happens in the fridge. The relatively hot air rises up and comes in contact with the cooling element. Thus making the air cold again. In this manner a convection process is established inside the fridge, which leads to uniform cooling inside the fridge.
Hence the cooling element is found at the top of the fridge.
Domestic compression cycle refrigerators transfer heat from the inside of the cabinet to the outside while generating a few hundred Watts of additional heat in the process. An evaporator (which is usually formed from Aluminum, and resembles a radiator) is located in the freezer compartment. This is the point where heat is removed. Heat from the refrigeration compartment is transfered to the freezer for removal. The process is normally assisted by interior and exterior fans.
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