The effects of an oil spill on the Maltese economy

Abstract

The following research will try to discover what would be the implications of a major oil spill in Malta. Effort would be done to quantify and map out where possible the damage inflicted on the Maltese economy and determine the severity of such implications on the vulnerable island-state. These aims are sought because Malta faces a medium-to-high risk of facing a major oil spill. Malta is situated at the center of the Mediterranean Sea and dozens of merchant vessels transit Malta on a daily occurrence whilst it is one of the major bunker hubs in the central Mediterranean region. The slightest human errors might lead to a major oil spill in which hundreds of tons of fuel oils might spill into the sea. As such, this research will take for granted that a major oil spill occurred and will seek to find out what will be the major environmental, social and economic consequences to develop. These will be evaluated and an exercise will be carried on to see how these will affect Malta‟s daily livelihood. With this respect, experts from Malta‟s main sectors will be consulted in an effort to share their in-depth knowledge. Through elite interviewing it was found that Malta‟s social and environmental backgrounds are likely to receive a massive economic/social/environmental setback since Malta‟s main sectors mainly biodiversity and tourism are highly vulnerable to shocks and their level of resilience is very low. As a result it is suggested that local sectors get the aid needed to build on their resilience whilst diversification is encouraged in order to minimize the vulnerability of each sector. This research sets out also to increase awareness on this subject and increase the appreciation towards the environment as it is only through it that life on Earth could be sustained and should its equilibrium be broken, serious complications are likely to follow.