Economic effects of enforcement variables on commercial oil pollution control strategy
Cook, Roger Charles
Terasawa, K. L.
Block, Michael A.
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An economic decision model for oil pollution control strategy is developed and applied to data taken from the Coast Guard's Pollution Control Incident Reporting System. The model and analysis show the impact of civil penalties, cleanup costs and internal costs on a firm's pollution control strategy. Civil penalties appear to have the largest effect on controlling minor spills, while internal costs become increasingly important to the firm's decision to control larger spills. Notes are included on the FIRS data base and development of an oil spill incident cost model.
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