There is increasing speculation that quasars are intimately linked to the evolution of their host galaxies. Not only are they triggered as galaxies build up mass through gas accretion, but they also have the potential to drive massive outflows that can directly affect galaxy evolution by heating the gas and expelling it from galaxy bulges. However, there remain considerable uncertainties about how, when and where quasars are triggered as galaxies evolve, and the true energetic significance for the quasar-induced outflows and their acceleration mechanism have yet to be established. In this talk I will present new Gemini, VLT, Spitzer and Herschel results on samples of luminous AGN in the local Universe which provide key information on the triggering mechanisms for quasars and physics of their outflows.