Ecomic theory and empirical models suggest that ecomic instruments should help us to meet environmental goals at lower cost. Practical experience, however, shows that the cost savings of emission trading are smaller than expected and charges usually have had small incentive impacts. This book gives the first comprehensive review of ecomic theory, simulation models, and practical experience with the use of ecomic instruments. The book focuses on air pollution control. Part I examines theoretical aspects and simulation modeling in a national context. Part II surveys the practical experience in a variety of countries. Part III explores international issues, such as joint implementation. Because of its unique blend of theoretical and empirical research, the book will prove interesting for both ecomists and those interested in environmental policy.