Innovation-oriented environmental regulation is extremely attractive f or policy planners and decision makers, since it is expected that inno vations can cut costs of environmental measures and overcome existing trade-offs between economic and ecological goals. The central question is, however, how such a regulatory regime of environmental policy app roaches should look like. This book provides an excellent overview of the state of research by presenting and discussing theoretical approac hes towards a framework of environmental regulation and innovation, in ternational case studies as well as econometric and modelling studies from Europe and the USA.