counterincentive

noun

coun·​ter·​in·​cen·​tive ˌkau̇n-tər-in-ˈsen-tiv 

variants or counter-incentive

plural counterincentives or counter-incentives

: something that discourages or tends to discourage a particular action : an incentive to avoid doing something

The company offered financial counterincentives to early retirement.

And the market doesn't create counter-incentives that would push us in a responsible direction …

—James Surowiecki

Word History

First Known Use

1871, in the meaning defined above