Illustrate graphically and very briefly explain how the production and consumption of green goods results in lower emissions . 15 . Briefly explain why firms have an incentive to monitor each other 's permit usage under a transferable emission permit scheme . 16 . Use the example of the proposed Northern Gateway bitumen pipeline to illustrate how conflict can arise between national and provincial interests . 17 . List four potential policies that could be adopted to provide firms with the incentive to reduce their production of hazardous wastes . 18 . Suppose the Ontario government is proposing to reduce the level of CO 2 emissions from manufacturing companies by 30 % by introducing transferable emission permits ( TEP ) , discuss some of the issues the Ontario Government should consider in setting up an effective TEP system . 19 . What are the two types of problems that originate from the Canadian Constitution and our federal / provincial system of government regarding the setting of environmental policy ? 20 . How do market - based policies differ from command - and - control policies with regard to incentives created by the policy to reveal information about the polluter 's