Although economists have long advocated the use of economic instruments in the implementation of environmental policy, they have only recently gained acceptance. There is a growing consensus within the European Union that both Member States and the environment would benefit from the use of such incentive-based economic instruments. This work has been written by members of the Study Group on the Environment and Economics of the National Environmental Forum, which includes economists and social scientists from all the major Dutch universities and research institutes. It covers a wide range of topics on the use of taxation and tradeable permits in a variety of abatement policies, and concludes with comments on political feasibility.