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In the post‐war years of fast economic growth extensive government regulations to curb growing environmental problems were developed in most Western countries. This regulative activity was directed primarily at larger fixed industrial installations with locally identifiable environmental effects. Since then, however, smaller and mobile sources, which are more difficult to regulate effectively, have increased their share in pollution. Now the scale of environmental problems has also changed from being mainly a local one to being a regional, a national, an international and even a global one. Examples of this are the diffusion of durable toxic substances, eutrophication, acid rain, depletion of the higher ozone layers, and the rising temperature of the atmosphere. Moreover, perceived social costs of environmental policy and other types of regulation have risen, inspiring a worldwide movement towards deregulation and privatisation. So there is ample reason to reconsider the instruments of environmental policy used so far and to look for ways to amend environmental effectiveness and social costs. In section I some of the directions which the search for improved instruments might take are identified and in the subsequent sections certain financial, social and product‐oriented instruments are analysed in more detail.

The life cycle assessment (LCA) guide of Heijungs et al. has been renewed to the latest methodological developments, aiming to make the ISO 14040 series on life cycle assessment operational. For this, a closer look was taken at intended applications in relation to required and practicable modelling options. Applications determine the required theoretical model, but the theoretical model required often comes into conflict with the available practical models and the needed operationality for decision support. To ease the tension between these requirements, simplifications need to be made in a guide on LCA. Two levels of sophistication have been worked out in the new guide documents: a detailed LCA with some options for extensions, and a simplified version.

“Environmental Policy in a Market Economy” was the theme of a congress recently organised in Wageningen, the Netherlands. At this meeting a number of participants elaborated on various fundamental aspects of the problem. The papers given have been brought together in this volume under the title “Principles of Environmental Policy”. In the field of environmental policy there are many pitfalls, some of which are found in the way the subject is approached. An illustration of the basic complexity of this can be seen in the following contradiction in the explanation of the phenomenon of social economic development.

The purpose of this paper is to introduce the Regional Centre of Expertise (RCE) on education for sustainable development (ESD) Hyogo‐Kobe, and the contribution of Kobe University as a model case. An attempt to develop and implement a new ESD programme in higher education is also reported.

A brief description of RCE Hyogo‐Kobe, which was approved in 2007, is followed by the description of the contribution of Kobe University to the RCE's starting phase to date and in the near future. The initiative of establishing the RCE as well as the design and implementation of the ESD programme developed through the collaboration of three faculties: the Faculty of Human Development, the Faculty of Letters, and the Faculty of Economics. The programme focuses on students carrying out participatory action research enabled by collaboration with regional stakeholders on ESD and SD.

Interdisciplinary collaboration was found to be essential in creating an innovative education programme in higher education. Activities and projects on ESD that existed earlier played important roles in the initiative, in formation of the network, and in directing RCE activities.

Information from the case study will be useful in the establishment and development of an RCE through the initiative of an institute of higher education.