“…Overall, the literature on technical change and environmental policy instruments has neglected environmental liability law. The exceptions to date are Endres and Bertram (2006), Endres et al (2007), Endres et al (2008), and Endres and Friehe (2011a), Endres and Friehe (2011b), Jacob (2015) in addition to Endres et al (2015) referred to above. 8 Overall, our comparison of the liability rules in the present paper leads to the following results: We find that the performances of strict liability and negligence differ in the two policy scenarios analyzed below.…”