Many scholars argue that environmental issues can be addressed through technological innovation, a proposal which echoes a lasting debate between environmental and ecological economics about the substitution rate between natural and manufactured capital. In addition to these two established...

Using a simple decision-theoretic approach, we formalize how agents with different kinds of intrinsic motivations react to the introduction of monetary incentives. We contend that empirical results supporting the existence of a crowding-out effect in various contexts hide a more complex reality....