Safeguarding an international "public good"- the Mediterranean environment : the polluter-pays principle

Abstract

From an economic point of view, the Mediterranean environment can be analysed as a resource (asset-like stock) yielding flows of services to households and business. The material balance model shows how the environment interacts with the economy: there is a flow of materials from the Mediterranean environment to the countries concerned and the return flow of these materials back to the Mediterranean Sea as wastes or residual. This return flow has an adverse impact on the volume and quality of other environmental services.' To provide the maximum possible benefits, the Mediterranean environment must be properly managed with sophisticated economic, technical and administrative instruments. Unlike most other kinds of resources, choices regarding environment cannot be left to individuals acting in unregulated and decentralised markets but must be properly and efficiently managed by the public authorities (local, regional, national and international).