Incentives

Incentives are anything that persuade a person or organization to alter their behavior to produce a desired outcome. Incentives are widely studied in personnel economics, where researchers and human resource managers examine how firms use pay, career opportunities, performance evaluation, and other mechanisms to motivate employees and improve organizational outcomes. Higher incentives are often associated with greater levels of effort and higher levels of performance. In comparison, disincentives discourage certain actions.

theory in behavioral science, politics, and behavioral economics

tax on activities generating negative externalities

incentive that has an unintended and undesirable result that is contrary to the intentions of its designers

total or partial exemption from tax