ABSTRACT
Denmark is particularly well suited to being the first in the series of six national studies. The relationship between environmental and industrial policy in Denmark has been consciously managed for some time. In managing this policy interface, Denmark has developed specific mechanisms which encourage dialogue and understanding between parties who, elsewhere, might be adversaries. Denmark provides a relatively straightforward illustration of the main elements of environmental policy, most of which recur in other industrialized countries. Even more than in other developed countries, environmental objectives are a major feature of Danish energy policy, although security of energy supply remains an important concern. Denmark's action will have a negligible effect on global emissions, but is imposing a large cost on its domestic industry. Danish regulators have not considered to any great extent the ways in which their regulatory system affects firms' strategic incentives for innovation. Danish industry is export-oriented.
