Abstract
Short term "smog"- problems and long term environmental problems will ask for severe measures, such as rationing, that will affect all income generating sectors in the na- tional economy. The distribution oriented Dutch economy in the short term will surely be hurt by these measures. Energy and environmental policy should first be based on long term adaptable changes in input substitution. Secondly however short term measures will be needed to overcome local envi- ronmental problems caused by, among other sectors, the transport sector.