New Models for the Compensation of Natural Resources Damage
Kentucky Journal for Equine, Agriculture, and Natural Resources Law, Vol. 4, No. 2
55 Pages Posted: 10 Nov 2012
Date Written: October 22, 2012
Current regulation and liability schemes ineffectively prevent and routinely under compensate natural resources damages. Compensation instruments, such as liability insurance, direct insurance, risk sharing agreement, environmental funds, and guarantees provided by liable parties or third parties can be used to better achieve efficient prevention and compensation. This article identifies three such models, combining regulation, liability rules, and compensation instruments. This article also identifies various factors to be considered when choosing a particular compensation scheme.
Keywords: environmental damage, natural resources damage, liability, insurance, financial responsibility, insolvency, regulation
JEL Classification: K13, K32, K41
Suggested Citation: Suggested Citation