Environmental agreements are evaluated from the point of view of the regulator as an instrument of environmental policy and from the point of view of industry as a strategic tool.

Both views offer the possibility to compare strenghts and weaknesses of environmental agreements with traditional "command and control".

A dynamic model describing the evolution of the relationship between Public Administration and industry in the definition and implementation of environmental policy is built. Voluntary agreements can play an increasingly important role, also thanks to the setting of a clear institutional framework at the European level, which is on its way.

Major problems concern differences of national legal, institutional and economic frameworks and the definition of a "system of guarantees" in favour of citizens and firms to ensure transparency and equity.

The Italian experience, which has been extensively investigated through a research program, the results of which are reported, shows some interesting features due to legal rigidity and a disperse industrial system. Nevertheless new legislation is changing this situation allowing more flexibility to Public Administration and incentives to firms to get involved into environmental negotiation and agreements.

The paper will be articulated into the following parts: an evolutive model of the development of environmental policies, an analysis of the EU and the Italian legal and institutional frameworks, the EU and the Italian experiences in environmental agreements, an evaluation of the conditions for implementation efficacy.