Introduction

As a leading cause of biodiversity loss and environmental damage, non-indigenous species can pose significant risks to society (see Mack et al. 2000, Lodge 2001). Managing these risks cost-effectively requires a consistent framework for bio-economic risk assessment. The economic theory of endogenous risk – merged with applied population ecology – provides such a framework (Shogren 2000; Leung et al. 2002). Endogenous risk captures the risk-benefit tradeoffs created by jointly determined ecosystem conditions, species characteristics and economic circumstances (Crocker and Tschirhart 1992; Settle et al. 2002). Endogenous risk theory stresses that management priorities depend crucially on both the tastes of the manager – his preferences over time and for risk bearing – and the technology of risk reduction – prevention, control and adaptation matter for optimal reduction strategies. Holding initial biological circumstances constant, managers with different preferences will likely make different choices on the mix of prevention and control. How different tastes affect technology choice, however, remains an open question in invasive species management.

This chapter investigates how manager types differentiated by preferences over time and over risk affect the optimal mix of prevention and control. The chapter advances our understanding on the behavioural underpinnings of risk-reduction strategies to control invasive species. Endogenous risk theory is a flexible tool that allows one to better understand the tradeoffs involved in changing the odds that good events are realised or in decreasing the severity of bad events if they are realised (Ehrlich and Becker 1972).