The Economic Analysis Of Environmental Pollution Liability Insurance System

Environmental pollution liability insurance is an insurance which subject is the enviromental pollution liability that the corporate conpensates to the third party caused by the corporate's environmental pollution.Environmental pollution liability insurance system is a series of rules to regulate the parties acts of environmental pollution liability insurance. The aim of it is to use economic methods to solve environmental problems. Environmental pollution liability insurance system with fifty years history have been widely used in the United States, Britain, Germany, France and other developed countries and regions. In 1990s, China began to establish environmental pollution liability insurance system. However, two years later, the system failed. Recently, "The Pollution Accidents of Songhua River" and other major environmental pollution accidents occurred frequently. The Ministy of Enviromental Protection of PRC suggestd establishing the environmental pollution liability insurance and made lots of rules to regulate it hoping to solve the current environmental problems. However, after two years, the system did not play its role. Therefore, this article will use the law and economic methods to analyse the environmental pollution liability insurance system at home and abroad in order to find the causes of failure and give the suggestions.This article includes five aspects: First, the concept of environmental pollution liability insurance and environmental pollution liability insurance system. Second, the reasons of environmental pollution liability insurance system. Summarized into four main theories: risk pooling theory, social welfare theory, transaction cost theory, externality theory. Third, the shortcomings of environmental pollution liability insurance system. Fourth, the improvement of environmental pollution liability insurance system which includes not only the improvement of the system itself, but also related to the establishment of alternative systems. Fifth, the analysis of China's environmental pollution liability insurance system.