Economic incentives refer to financial rewards or penalties designed to encourage certain behaviors or actions among individuals, organizations, or other entities. These incentives can take the form of tax breaks, subsidies, grants, fines, or other financial mechanisms that aim to influence decision-making and drive desired outcomes, such as increased investment, reduced emissions, or improved productivity. Economic incentives are often used in various policy areas, such as environmental protection, healthcare, education, and business development, to help achieve specific goals and objectives.