Liability for oil spill damages: Issues,methods, and examples |
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Authors: | Thomas A Grigalunas James J Opaluch Jerry Diamantides Marisa Mazzotta |
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Institution: | 1. Department of Environmental and Natural Resource Economics , University of Rhode Island Kingston , Rhode Island, USA;2. Environmental Economics , University of Rhode Island , 3rd Floor, Lippitt Hall, Kingston, RI, 02881, USA;3. Department of Environmental and Natural Resource Economics , University of Rhode Island Kingston , Rhode Island, USA |
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Abstract: | Liability is an important incentive‐based instrument for preventing oil spills and provides a sustainable approach for restoring coastal resources injured by spills. However, the use of liability for environmental damages raises many challenges, including quantification of money measures of damages. In this article, case studies are used to illustrate the issues, methods, and challenges associated with assessing a range of damages, from those that can be measured relatively easily using market information to more “esoteric,”; and much more difficult, cases involving non‐market‐valued losses. Also discussed are issues raised by the new national and international regulatory focus on restoration and by the simplified, compensatory formula used by some states. |
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Keywords: | oil spills economic damages liability |
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