Economic Analysis of Compensation for Oil Pollution Damage
Posted: 8 Apr 2008 Last revised: 23 Oct 2013
Date Written: 2006
This paper provides an economic analysis of Chinese law with respect to the compensation for oil pollution damage. A few features of the current Chinese compensation regime are examined, using traditional economic analysis of law. Also differences between Chinese law and the international conventions (for example the fact the Chinese law has no compulsory insurance and lacks a compensation fund) are discussed. The goal of that chapter is to examine critically the compensation for oil pollution damage under Chinese law from a law and economics perspective. After an introduction, a brief overview of Chinese law is provided. Next a critical economic analysis of specific interesting aspects of Chinese law relating to the compensation for oil pollution damage is provided and a few policy recommendations are formulated, indicating how Chinese law might benefit from the lessons of economic analysis.
Keywords: economic analysis, compensation, oil pollution damage, law and economics perspective
JEL Classification: K10, K32, K33
Suggested Citation: Suggested Citation