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Some people think that incentive-based environmental policies create more federal–provincial conflict than command-and-control policies. Why might...

Some people think that incentive-based environmental policies create more federal–provincial conflict than command-and-control policies. Why might this be the case?

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Incentive based environmental policies give incentives to the entities who control their pollution emission level. In return, these entities or firms are awarded incentives. But, it creates conflict between the federal government and provincial government, because there is a lack of clarity regarding the fixation of responsibility of the payment of incentives whether it will be paid by the federal or provincial government as well as how much incentives are to be awarded. It creates conflict, as it brings financial burden and differences in ascertainment of the movement of pollution from Federal control to provincial control and vice versa. It is another source of conflict in this model of environmental policies. So, people say that incentives based environmental policies create conflict.

Though, when command and control policies are implemented, then there is more clarity upon the firms regarding their pollution emission level and there is no financial burden upon the provinces as well. So, conflicts are eliminated.

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