Environmental rules and regulations are only useful insofar as firms can be
persuaded to comply with them-in full or in part. We survey the rapidly gr
owing literature on the enforcement aspects of environmental policy. The di
fficulties facing any regulatory agency are likely to be exacerbated by inf
ormation problems, penalty constraints, and the evasion efforts of firms, a
nd we emphasize the role that recent innovative approaches to implementatio
n can play in bolstering more traditional enforcement instruments.