The research projects at Fondazione Mattei have for some time now been dealing with the international dimension of environmental policy. Indeed, most environ- mental phenomena have international implications, which stem from a number of factors: physical ones, such as the transnational or global consequences of pollution and resource conservation; technological factors, such as technological cooperation and diffusion; and economic factors, such as trad~, plant localiza- tion and migrations. Even in the absence of transnational pollution, therefore, the environmental issues involve substantial interdependence among countries. This volume, edited by Carlo Carraro, presents some of the research which we carried out in international environmental policy, focusing on the relationship between trade, innovation and the environment. The papers in part one discuss the impact of international trade and institu- tions on environmental resources. Those in part two deal with the importance of innovation when attempting to solve the major environmental problems. The papers in part three, finally, focus on specific policy issues stressing the impor- tance of institutions and property rights. The whole set of contributions can be seen as progress in environmental economics. The different chapters highlight the close relationship between envi- ronmental issues and economic development and they merge the literature on the environment with the literature on innovation, economic growth, trade, plant localization, institutions, etc.