During the last three decades, there has been a vast literature on environmental economics. A very broad and crude classification of this literature is into the two categories environmental regulation and valuation of environmental goods. The focus of the present research project was on the first of these two categories. In particular, the project has focused on the following broad and partly overlapping themes (although not all of the work fits into any of these categories):

A. International environmental/climate agreements
B. Endogenous technology development
C. Dynamics and time consistency
D. Limited rationality, altruism, and social interdependency of preferences

Additional research carried out covered issues like biodiversity conservation, interjurisdictional competition for mobile foreign direct investment by means of environmental standards, and economic-geography issues like the geographical concentration of pollution via agglomeration of economic activities.