This paper introduces to the main policy research issues that the interrelationship between environmental and economic problems has recently emphasised. Economists have traditionally encouraged the use of incentive-based instruments in place of command and control regulation. The starting point...

This thesis was written by Christian Beermann while he was a research assistant at the Center for Economic Studies (CES) at the University of Munich. It was completed in December 2014 and accepted as a doctoral thesis by the Department of Economics at the University of Munich in May 2015. The...