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Defenses can strengthen deterrence by reducing the incentive for proliferation.
Without them, innovators may not benefit enough from sharing their creations, reducing the incentive to create.
That, in turn, tends to slow productivity growth by reducing the incentive for further substitution of capital for labour.
Such discussions might find ways to reduce the disparities, thus reducing the incentive for United States residents to cross the border to get less costly drugs.
But keeping the price artificially low also has the impact of reducing the incentive to switch to more expensive renewable energy.
This certainty of American involvement brings stability to the region, reducing the incentive for countries there to enter an arms race to defend themselves from one another.
The effect has been to depress carbon prices — reducing the incentive to invest in cleaner technologies — and lessen the downward pressure on emissions.
A glut of permits issued by Europe's emissions-trading scheme has caused the price to sink, thus reducing the incentive for firms to cut carbon.
Similar(3)
We think we can do that by reducing the incentives of our welfare system.
Then their taxes went up, reducing the incentives to work and increasing the incentives to relax.
Increasing payroll tax contributions could make the problem worse, by possibly reducing the incentives for workers to continue working.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com