This book is the result of a four years' research project at the
European Uni versity Institute in Florence, Italy. I am grateful to
my supervisor, Mark Salmon, for his many ideas. I am also indebted
to my co-supervisor, Aart de Zeeuw, for his and Alister Ulph.
unfailing support and to Carlo Carraro, Louis Phlips I gratefully
acknowledge the help and assistance of many people that advised at
some stage, Scott Barrett, Peter Bohm, Lans Bovenberg, Partha
Dasgupta, me Klaus Hasselman, Peter Kort, alIi Tahvonen, Cees
Withagen and Clifford Wymer. Thanks also to the faculty and
students of the Department of Economics of the European University
Institute and especially to Jacqueline, Jessica, Marcia and Barbara
for their moral support; my Italian teacher Camilla; my 'Gruppo di
Lavoro' Tilman, Peter and Luisa; my dear Dutch friends Yvo, Pieter,
Ida and Ellen; international friends Bogdan, Stuart, Melanie,
Henning, Anantha, Paolo, Pompeo, Nikos, Christian, Analisa,
Dorothea, Valeria and Stefani a; the members of the Working Group
of Environmental Studies; and finally my girlfriends who gave up on
me because they thought I was working too hard and not spending
enough time with them. Also many thanks to my landlady Olga, who
taught me the beauty of Italian literature and opera and my
landlord Emilio and their dog Igor. I am also greatly indebted to
Professor Larry Susskind and to the Massachusetts Institute of
Technology where I spent an extremely inspiring semester."
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