The analysis of the inner workings of the firm has been largely absent from economic assessments of environmental policy. In an effort to partly fill this vacuum, this book summarises the results of an OECD project which collected and analysed data from over 4,000 facilities in seven OECD countries. Issues addressed include the role of 'flexible' policy instruments in encouraging clean production strategies and environmental research and development; the effectiveness of different environmental policy incentives on the introduction of environmental management systems and tools; and the relationship between environmental and commercial performance.