Some examples of incentives gone wrong:
Early Human Discovery
Ralph, a paleontologist, took his team to a discovery site in Java. He offered the locals 10 cents for every piece of bone they could find.
To his horror, he realized that people ended up smashing larger pieces into smaller ones to maximize their income which ruined the entire operation.
The Cobra Effect
During the British rule in India, Delhi had many venomous snakes at one point. The government came up with an incentive. They offered a bounty for every dead cobra.
It worked well for a while. A large number of cobras were killed. But eventually, people started breeding cobras.
When the government realized this, it scrapped the bounty. Now all the cobras were worthless. And people released them into the wild. That ended up worsening the problem.
You can find more here: https://en.wikipedia.org/wiki/Perverse_incentive