Since the 1990s a clear shift towards an increased use of market-based instruments in environmental policy can be observed. Behind the emergence of new policy tools one can point at a strive for more efficient policy measures and a changing nature of the environmental problems. The move towards market-besed regulation should be seen in an institutional context. The development is in fact more a case of reregulation than deregulation. In many cases the new intruments have supplemented rather than replaced existing ones. The case study in the book reveals similarities and differences concerning the introduction of market-based regulation in Finland and Sweden. The two Nordic countries seem to follow converging paths of development with regard to market-based policy making. Both countries have also experienced the consequences of being forerunners in environmental policy in an European context.