The use of legislation by EU governments to define environmental standards for industry has been criticised for its poor track record in arresting the decline in the quality of Europe's environment. Environmental economists in particular have proposed that legislation should be supplemented or replaced by New Environmental Policy Instruments (NEPIs), such as eco-taxes, environmental charges, tradable permits and voluntary agreements. This book focuses on practical experiences with NEPIs in the EU and tests their application using the case study of the Packaging and Packaging Waste Directive. It traces the ways in which member states have adapted NEPIs to suit their preferred styles of environmental policy, then assesses their performance and how NEPIs have both assisted and hindered the EU environmental programme. It suggests options for ensuring that the environmental programme does not become fragmented by the use of NEPIs and discusses the implications of EU enlargement.