Part 1: Environmental Taxation, Market Structure, International Trade. 1. Emission Taxes and Market Structure; Y. Katsoulacos, A. Xepapadeas. 2. Environmental Taxation, Market Share, and Profits in Oligopoly; C. Carraro, A. Soubeyan. 3. Naive Use of Environmental Policy Instruments; U. Ebert. 4. Optimal Environmental Policy for Oligopolistic Industries under Intra-Industry Trade; K. Conrad. 5. Choosing Emission Taxes under International Competition; K. Conrad. 6. Strategic Environmental Policy and International Trade - the Role of Market Conduct; A. Ulph. Part 2: Environmental Policy, Innovation and Market Structure. 7. Innovation under the Threat of Stricter Environmental Standards; O. Cadot, B. Sinclair Desgagne. 8. Environmental Innovation, Spillovers and Optimal Policy Rules; Y. Katsoulacos, A. Xepapadeas. 9. Environmental Policy and the Choice of Production Technology; C. Carraro, A. Soubeyan. 10. Trade, Strategic Innovation and Strategic Environmental Policy - a General Analysis; A. Ulph, D. Ulph.