ON THE ECONOMICS OF BIOLOGICAL INVASION: AN APPLICATION TO RECREATIONAL FISHING
Jon Olaf Olaussen
The paper demonstrates four general mechanisms that may affect economically
valuable species when exposed to biological invasion. We distinguish
between an ecological level effect and an ecological growth effect.
In addition we present an economic quantity effect
working through demand. Finally we suggest that there is an economic
quality effect that
reflects the possibility that invasions affect the harvesting agents
directly through new
demand-side forces. For example, this may occur because the state of
the original species or
the ecosystem is altered. We depart from the existing literature by revealing
ecological and economic forces that explain why different agents
may lack incentives to control invasions.
The theoretical model is illustrated by the case where escaped farmed
salmon influence wild Atlantic salmon fisheries.