Economics and Liability for Environmental Problems (The International Library of Environmental Economics and Policy) - Hardcover

Hardcover

ISBN 10: 0754621944 ISBN 13: 9780754621942

Publisher: Routledge, 2002

Synopsis

This convenient reference brings together notable contributions examining all aspects of the liability for environmental accidents. Articles included in the Part I of this volume examine the role of liability as a policy instrument, and provide detailed examinations of the incentive effects created by the imposition of liability, ie. Bankruptcy, litigation costs, delegation of responsibility and insurance. Those in Part II study specific environmental issues such as hazardous waste disposal and oil spills. The International Library of Environmental Economics and Policy explores the influence of economics on the development of environmental and natural resource policy. In a series of twenty five volumes, the most significant journal essays in key areas of the contemporary environmental and resource policy are collected. This convenient reference brings together the notable contributions examining all aspects of the liability for environmental accidents.

About this title

Synopsis

This volume asks "what is environmental liability"? It discusses event-based pollution problems, suggesting that in such cases environmental policy instruments can take either the "ex-ante" policy forms such as taxation, or "ex-post" policy instruments - compensation, for example. Environmental liability is an example of an ex-post policy instrument, under which a party responsible for contamination becomes liable for the damages. The papers in this volume suggest the following conclusion regarding the role of liability as a means of reducing environmental risks. In principle, liability has the potential to create strong incentives to reduce environmental risks through increased precaution and reduction in risky activities. However, this potential will be realized only when the likelihood that a responsible party will actually pay for the damages from his negligent behaviour is sufficiently high. The incentive effects of liability are often reduced as a result of the nature of the risk, the nature of the polluter, the constraints on the use of legal system, or the design of the liability policy.

While liability rules can be designed to reduce these disincentive effects, it is likely that the joint use of liability and safety regulation will lead to mor eeffective reduction of environmental risks than the use of liability alone.

Edition details

• Publisher: Routledge
• Publication date: 2002
• Language: English
• ISBN 10: 0754621944
• ISBN 13: 9780754621942
• Binding: Hardcover
• Edition number: 1
• Number of pages: 524
• Editor: Segerson Kathleen