Part I. The Internalization of Externalities as Central Theme of Environmental Policy: 1. Foundations; 2. Implications of making the concept of internalization programmatic in environment policy; Part II. Strategies for Internalizing Externalities: 3. Negotiations; 4. Environmental liability law; 5. Pigovian tax; Part III. Standard-Oriented Instruments of Environmental Policy: 6. Introduction; 7. Types of environmental policy instruments; 8. Assessment of environmental policy instruments; Part IV. Extensions of the Basic Environmental-Economics Model: 9. Environmental policy with pollutant interactions; 10. Environmental policy with imperfect competition; 11. Internalization negotiations with asymmetrical information; 12. The 'double dividend' of the green tax; 13. The induction of advances in environmental technology through environment policy; Part V. International Environmental Problems: 14. Introduction; 15. International environmental agreements; 16. Instruments of international environmental policy the example of the EU's emissions trading; 17. Epilogue: the vision of a federal US emission trading system; Part VI. Natural Resources and Sustainable Development: 18. Resource exhaustion - the end of mankind?; 19. Renewable resources; 20. Sustainable development; Epilogue: three types of externality and the increasing difficulty of internalizing them.