An economic approach to the question whether harmonisation of the conditions of competition, in particular environmental standards, is necessary to achieve market integration; the impact of the subsidiarity principle on answering the question; the rationales for European environmental measures; criteria for centralisation of environmental issues -trans boundary considerations, the "race for the bottom" and whether lower environmental standards in fact attract industrial investment or encourage relocation, the reduction of transaction costs, and the concept of "European heritage"; consequences for environmental standard-setting: harmonised target standards but differentiated emission limit values according to local circumstances. Conclusion that there is no support for the view that conditions of competition should be harmonised to achieve market integration, but that a balanced answer in respect of which subjects should be regulated centrally and which locally, but nevertheless recognising the continuing value of standardisation of procedures in environmental law, is desirable.
European Energy and Environmental Law Review