There are three main environmental management strategies so far developed to deal with the environmental quality concerns: command-and-control (CAC) strategy, voluntary measures strategy (VM) and economic instruments (EI) or market type environmental management tools strategy. For an effective environmental management all these strategies should be utilized in a harmonized manner depending on the strengths and weaknesses of the surrounding economic, social and institutional circumstances of the societies such as availability of financial funds, status of internal market and citizen awareness over environmental issues. Individually all of these strategies do have their own superiorities and disadvantages as a tool to upgrade the environmental quality and to maintain it. However, when compared, it is observed that the environmental management tools which are mainly economic and financial in nature are gaining more recognition due to their efficiency and effectiveness. The article tries
to introduce the economic and financial instruments of environmental management.