An example of a negative incentive is the prospect of a speeding ticket. Changes in incentives cause people to change their behavior in predictable ways. From biblical times to the very recent past, children were thought to be better motivated through negative incentives — known in the bible as the “rod” and two generations ago as “a good spanking” — than positive incentives. Positive statements are objective statements that can be tested, amended or rejected by referring to the available evidence.Positive economics deals with objective explanation and the testing and rejection of theories. Provide illustrations of negative and positive, monetary and non-monetary incentives and how they shape behavior. The main disadvantage associated with economic incentives is that they can be inappropriate for dealing with environmental issues that pose equity concerns. Negative economic incentives, or disincentives, punish people financially for taking certain actions. Negative incentives refer to bad consequences, such as losses and fines, which can discourage the behavior. - Extra credits can be used to incentivize students to participate more in class - A tax cut in the agricultural sector is a good incentive for people to invest more in the sector •Negative incentives also … Emissions trading programs, for example, could have the unintended consequence of concentrating pollution in economically-disadvantaged areas (pollution hot-spots). An example of a negative incentive is the prospect of a speeding ticket. This is a way of encouraging specific actions without making them compulsory. Research however, shows that negative incentives; incentives that require individuals to perform in order to avoid a loss, are more motivating than positive incentives, which motivate individuals through a gain. Negative incentives refer to bad consequences, such as losses and fines, which can discourage the behavior. 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