New Models for the Compensation of Natural Resources Damage

Kentucky Journal for Equine, Agriculture, and Natural Resources Law, Vol. 4, No. 2

Maastricht Faculty of Law Working Paper

55 Pages Posted: 10 Nov 2012

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

Liu Jing

affiliation not provided to SSRN

Date Written: October 22, 2012

Abstract

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

Faure, Michael G. and Jing, Liu, New Models for the Compensation of Natural Resources Damage (October 22, 2012). Kentucky Journal for Equine, Agriculture, and Natural Resources Law, Vol. 4, No. 2; Maastricht Faculty of Law Working Paper. Available at SSRN: https://ssrn.com/abstract=2165337

Michael G. Faure (Contact Author)

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

Liu Jing

affiliation not provided to SSRN ( email )

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