Nonmarket Valuations of Accidental Oil Spills: A Survey of Economic and Legal Principles

Abstract

This paper presents an overview of legal and economic theories used to assess liability and damages for loss of nonmarket goods arising from an accidental oil spill. Several different economic methods used for quantifying values are discussed and critiqued. Also reviewed are the fundamental legal doctrines that permit individuals and public agencies to seek compensation for these damages. To illustrate the applicability of these economic and legal theories, two case studies are presented and evaluated in terms of the principles presented earlier.