Financial Caps for Oil Pollution Damage: A Historical Mistake?

Marine Policy, Forthcoming

Maastricht Faculty of Law Working Paper

42 Pages Posted: 8 Apr 2008 Last revised: 4 Oct 2014

See all articles by Michael G. Faure

Michael G. Faure

University of Maastricht - Faculty of Law, Metro; Erasmus University Rotterdam (EUR) - Erasmus School of Law

Hui Wang

KU Leuven

Date Written: 2008

Abstract

The paper will be structured as follows: after an introduction, an historical overview of the use of financial caps in maritime law will be provided. Next, the caps in the international conventions on oil pollution damage will be described on the basis of an analysis of their legal history and the subsequent evolution of the conventions. The limitation of liability for oil pollution damage has been criticized in legal and economic literature; a brief summary of this critique in the literature is provided. Next a simple economic analysis of financial caps for oil pollution damage is provided on the basis of the economic analysis of accident law. Subsequently the economic analysis is linked with the historical analysis by asking the question whether the financial caps should be considered as a historical mistake. A few concluding remarks follow.

Keywords: Financial Caps, Oil Pollution Damage, Maritime Law, Strict Liability, Accident Law

JEL Classification: D81, H59, K13, Q59

Suggested Citation

Faure, Michael G. and Wang, Hui, Financial Caps for Oil Pollution Damage: A Historical Mistake? (2008). ; Maastricht Faculty of Law Working Paper. Available at SSRN: https://ssrn.com/abstract=1116173

Yleen Simonis (Contact Author)

METRO ( email )

P.O.Box 616
Maastricht, 6200 MD
Netherlands

Michael G. Faure

University of Maastricht - Faculty of Law, Metro ( email )

PO Box 616
Maastricht, 6200 MD
Netherlands
+31 - 43 - 388 30 60 (Phone)
+31 - 43 - 325 90 91 (Fax)

HOME PAGE: http://www.michaelfaure.be

Erasmus University Rotterdam (EUR) - Erasmus School of Law ( email )

3000 DR Rotterdam
Netherlands

Hui Wang

KU Leuven ( email )

Oude Markt 13
Leuven, Vlaams-Brabant 3000
Belgium

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