For a good understanding of the players, the game, and the money, try Undue Influence by Ron Arnold.
To see how the policy doesn't work in an urban environment, try The Vanishing Automobile and Other Urban Myths by Randal O'Toole.
To see how the policy doesn't work in a natural environment, why it works the way it does, and how to fix it, try Natural Process: That Environmental Laws May Serve the Laws of Nature by... me.