Environmental pollution is one of the biggest problems in modern age that exists in many different forms. The issue of environmental pollution should be dealed at global and national levels. In order to successfully work on solving the problems on environmental pollution, it's important to have common policies and laws related to environmental protection. Also, the population should have developed awareness of the current ecological situation and the impacts that happen in the environment if the natural resources are (and continue) to be used uncontrolled. Today, most of the countries in the world including Croatia have a developed environmental policy and goals to achieve in order to protect, preserve and timely use natural resources in the one hand and preserve human health while improving the quality of life on the other. To achieve the established goals, governement uses different environmental policy instruments and measures. Most common used instruments are: commanding-supervisory, economic instruments and voluntary agreements. This paper focuses on the use of economic instruments especially environmental taxes, fees and incentives in order to protect the environment in Croatia. The instruments will be firstly analyzed through theoretical implementation and finally through a case study which will determine how successfull is the use of the applied instruments.