Environmental Liability and Harmonization in the Presence of Transboundary Effects and Hidden Assets

University of Alberta Economics Working Paper No. 2005-01-17

28 Pages Posted: 2 Feb 2005

See all articles by Henry van Egteren

Henry van Egteren

University of Alberta - Department of Economics

R. Todd Smith

University of Alberta

Andrew Eckert

University of Alberta - Department of Economics

Date Written: January 17, 2005

Abstract

Within the context of transboundary disputes, this paper seeks to determine which liability concept, negligence or strict liability, performs better when assets are secure against foreign claims for transboundary damages. Our results indicate that, if assets are hidden from foreign claims, strict liability will not implement the socially optimal outcome, but neither will negligence. However, even though the socially optimal outcome is not always achieved, strict liability weakly dominates negligence. These results suggest that the harmonization of statutes that deal with transboundary pollution should be based on strict liability not negligence.

Keywords: Strict liability, negligence, transboundary pollution, harmonization

JEL Classification: K32

Suggested Citation

van Egteren, Henry and Smith, Richard Todd and Eckert, Andrew, Environmental Liability and Harmonization in the Presence of Transboundary Effects and Hidden Assets (January 17, 2005). University of Alberta Economics Working Paper No. 2005-01-17. Available at SSRN: https://ssrn.com/abstract=658383 or http://dx.doi.org/10.2139/ssrn.658383

Henry Van Egteren (Contact Author)

University of Alberta - Department of Economics ( email )

Edmonton, Alberta T6G 2H4
Canada
780-492-7637 (Phone)

Richard Todd Smith

University of Alberta ( email )

8-14 Tory Building
Edmonton, Alberta T6G 2H4
Canada
403-492-7898 (Phone)
403-492-3300 (Fax)

Andrew Eckert

University of Alberta - Department of Economics ( email )

8-14 Tory Building
Edmonton, Alberta T6G 2H4
Canada

Register to save articles to
your library

Register

Paper statistics

Downloads
104
Abstract Views
678
rank
264,292
PlumX Metrics