This document analyses certain economic aspects of environmental policy in France, focussing on greenhouse gas emissions, water pollution and discharges in city air. Like most other OECD countries, France has been endeavouring for some years to make its growth environmentally sustainable. These efforts have been based on the traditional instruments of environmental protection—regulatory standards, in particular. But this approach has lacked economic efficiency in that it has not allowed efforts to be concentrated on pollution sources with the lowest abatement costs. Aware of these inadequacies, the authorities have adopted a new approach that involves more extensive and more efficient use of economic analysis and instruments. However, the measure adopted to curb emissions of greenhouse gases — negotiation of voluntary agreements with industrial producers — will not serve to reduce greenhouse gas emissions significantly and at least cost, as international experience has shown. It ...