Economic costs of invasive species
Abstract
The problem of the economic costs of invasive species is a striking example of a „soft budget constraint” in economic terms. Our study explores how the postponement of strategic decisions leads to a situation where problems that initially seem minor escalate at an exponential rate, causing significant economic damage and irreversible natural losses. Using the theoretical framework developed by János Kornai, we show why economic actors and decision-makers do not feel the urgent need for early prevention, and how false confidence in ‘rescue mechanisms’ contributes to the spread and exacerbation of biological invasions. We highlight the various cost estimation methods, from direct economic damage to bioeconomic models, emphasising the consequences of underestimating non-market values. Through global and regional examples, we illustrate how inadequate monitoring systems, political priorities and lobbying by interest groups deepen soft budget constraints. Finally, we make policy recommendations that can help to develop harder fiscal constraints, promoting early prevention and thus long-term ecological and economic sustainability.
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