Plan Bleu & UNEP/MAP, ss.15, Marseille, 2025
The economic burden of invasive alien species (IAS) in the Mediterranean is substantial, with financial losses exceeding $27.3 billion across key sectors such as fisheries, aquaculture, and tourism. Despite these costs, current IAS management strategies remain predominantly reactive, focusing on control and mitigation rather than prevention. Efforts to mitigate IAS impacts require substantial financial investment, making the exploration of financial mechanisms for prevention and control crucial. This chapter critically examines the role of economic tools in addressing IAS impacts, emphasizing their potential to enhance financial sustainability and long-term management effectiveness.
This chapter discusses how a range of economic instruments, including subsidies, compensation schemes, taxation, tradable permits, and performance bonds, offer mechanisms to internalize the costs of IAS while incentivizing proactive management. Direct financial incentives, such as removal subsidies for pufferfish and lionfish, have demonstrated success in aligning economic and ecological objectives by integrating IAS control into commercial fishing activities. Compensation mechanisms for fishers affected by IAS-driven stock declines further highlight the importance of economic support structures. Meanwhile, taxation models, such as Pigouvian taxes on high-risk activities (e.g., ballast water discharge, ornamental species trade), aim to reduce IAS introductions at their source. However, challenges remain, including the difficulty of quantifying invasion risks, enforcing tax policies, and ensuring the long-term sustainability of financial incentives.
Public-private partnerships represent a critical yet underutilized opportunity for IAS management. The private sector can contribute through direct funding mechanisms, investment in detection and removal technologies, and the development of commercial markets for certain invasive species. By transforming IAS into economically viable resources, such as through targeted fisheries, food markets, or industrial applications, economic tools can shift IAS management from a financial liability to a sustainable opportunity.
Despite these advancements, gaps persist in funding stability, governance coordination, and policy implementation, particularly in non-EU Mediterranean countries. Strengthening financial mechanisms, ensuring multi-stakeholder engagement, and integrating economic models into broader conservation frameworks are essential for improving IAS management outcomes. This chapter underscores the necessity of adaptive, market-based economic strategies to create a resilient financial and policy framework that simultaneously supports biodiversity conservation and economic stability in the Mediterranean region.