What are positive and perverse incentives?
A positive incentive is a financial instrument or policy (such as a tax or tax break, fee, fine or financial reward) that has a positive impact on biodiversity in general, and on protected area specifically. Examples include tax reductions for landowners who conserve forests, environmental fines for pollution, market-based premiums for sustainably harvested products, biodiversity offset policies, and airport departure taxes that subsidize the protected area system. A perverse incentive is a financial instrument or policy that has a negative impact on biodiversity and protected areas, often unintended. Examples include inappropriate subsidies for timber harvesting, agricultural policies that result in inappropriate use of pesticides, and land tenure systems that favor land clearing over land conservation.