Ship Oil Pollution Damage, The Liability Regime Of Economic Analysis

The pollution caused by oil (escaped from or been discharged from vessels) plays the most important role in marine oil pollution. Although the amount of oil escaped from vessels following an accident is much less than that been discharged from vessels intentionally, the pollution caused by it is severer and more intensive.Facing this kind of oil pollution, there are three urgent problems to be settled: How to mitigate damage? How to make enough compensation for victims? How to prevent similar accidents from happening again? The settlement of these problems relies on the rational design of relating legal mechanisms.This article uses economic analysis to comment certain legal mechanisms designed for the solution of marine oil pollution, especially on the functions for realizing enough compensation for victims and enhancing relating parties' caution.In Part Ⅱ, this article analyzes the scope of losses which shall be compensated.In Part Ⅲ, this article analyzes the rationale of the introduction of strict liability into the area of marine oil pollution by considering common characteristics of Environmental pollution, and abstracts some special characteristics of marine oil pollution as the foundation for further discussion.In Part Ⅳ, this article discusses the rationale of "immunity clauses" mechanism in the area of marine oil pollution, and discloses the essence of "strict liability" further.In Part Ⅴ, this article discloses the justification embodied in "limitation of liability", pointing out that, besides the same consideration as that for "immunity clauses", the foremost consideration of the mechanism is to assist in the foundation of compulsory liability insurance mechanism.In Part Ⅵ, the discussion about compulsory liability insurance in the area of marine oil pollution discloses the necessity of the mechanism and potential threats arising from special characteristics of marine oil pollution.In Part Ⅶ, the application of "vicarious liability" justifies the rationale of the foundation of Compensation Fund. This article points out that the compensationfund mechanism and the compulsory liability insurance system are both founded for the perfection of "strict liability".In Part VIII, the explanation of the "the spiller, the obligator" principle could be deemed as an application of the conclusions drawn above (especially Part VI) disclosing the rationale of the principle from the view of compulsory liability insurance.Through the above mentioned analysis, the following conclusions were drawn:1. In consideration of the differences between the "individual economic loss" and the "loss of the whole society", we shall be careful to take the "economic loss" as one kind of loss which the tortfeasors shall be responsible for.2. The introduction of "strict liability" into the area of marine oil pollution (including the design of "immunity clauses", "limitation of liability", and "compulsory insurance") embodies the consideration of balancing oil industry and environment protection.3. The "compulsory liability insurance" system is the most important design for the introduction of "strict liability"—It guarantees the full compensation for victims, while keeps potential tortfeasors' incentive of care on a proper level at the same time.4. For the assistance of the maintenance of "strict liability", it is necessary to set limitation of liability aiming at the protection for potential tortfeasors. The proper level of limitation should be decided according to specific situations of different nations.5. Similarly, the principle of "the spiller, the obligator" which seems odd has its rationale, considering the decrease of social insurance cost and control of underwriters on insurers.