MODELING OIL SPILL RESPONSE AND DAMAGE COSTS

Abstract

The EPA Basic Oil Spill Cost Estimation Model (BOSCEM) was developed to provide the US Environmental Protection Agency (EPA) Oil Program with a methodology for estimating oil spill costs, including response costs and environmental and socioeconomic damages, for actual or hypothetical spills. The model can quantify relative damage and cost for different spill types for regulatory impact evaluation, contingency planning, and assessing the value of spill prevention and reduction measures. EPA BOSCEM incorporates spill-specific factors that influence costs – spill amount; oil type; response methodology and effectiveness; impacted medium; location-specific socioeconomic value, freshwater vulnerability, habitat/wildlife sensitivity; and location type. Including these spill-specific factors to develop cost estimates provides greater accuracy in estimating oil spill costs than universal per-gallon figures used elsewhere. The model’s basic structure allows for specification of response methodologies, including dispersants and in situ burning, which may have future applications in freshwater and inland settings. Response effectiveness can also be specified, allowing for analysis of potential benefits of response improvements.