The objectives of this project were to provide practical advice concerning the effectiveness and efficiency of alternative environmental policy measures. Questions to be addressed in the project included:

- Do different types of policies (i.e. market-based measures, voluntary approaches, direct regulation) result in different organisational responses within the firm?

- How can public authorities support the introduction of management practices which lead to improved environmental performance and innovation?

- How can scarce public resources be better targeted to ensure that both "leaders" and "laggards" improve their environmental performance?

In order to answer these and related questions, a large cross-OECD industrial survey was undertaken. Such a methodology is necessary in order to ensure that the policy recommendations are based upon solid empirical foundations. The survey was undertaken by the seven participating research teams (Germany, Canada, France, United States, Hungary, Norway and Japan) in the Spring of 2003.

The extension of the project by OECD allowed the project teams to undertake an in-depth-analysis of the rich database that has been developed. The German sub-project analysed especially all innovation-related aspects of state regulation and firm behaviour regarding environmental and economic performance in the seven participating OECD countries.

During the closing workshop (June 2005, Washington) all of the project results were presented and discussed by the participating research teams. The German sub-project was closed with the result that the use of Cleaner Production is incrementing in these seven OECD countries and it is proportionately higher than the one of the end of pipe Technologies.