In what cases should new.env be used to create a new environment?

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In the "What is the most useful R trick?" (here), I read that using environments give "pass-by-reference capabilities". Are there any limits and/or gotchas with this approach?

Also, in general what are the pros and cons of using created environments? This is something I've been confused about for quite some time, so any clarity or reference would be very helpful to me.

Thank you in advance.

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