Financial Caps for Oil Pollution Damage: A Historical Mistake?
Marine Policy, Forthcoming
42 Pages Posted: 8 Apr 2008 Last revised: 4 Oct 2014
Date Written: 2008
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: Suggested Citation