Oil Spills

Oil spills pose significant ecological, social, and economic consequences. The response to a spill and the effects of pollution damage can give rise potentially to high costs. The financial risk of an oil spill is consequently of immense interest to policy makers and the organizations involved in funding and providing compensation and in determining risk and liability.

This paper examines the various factors affecting the cost of ship-source oil spills, considering the aspects contributing to the overall cost of an incident. The paper will provide a brief overview of the nature of oil spills from a financial point of view and the importance of understanding their costs. A review of publicly available data on the costs of past oil spills will be analyzed, adjusting for a common currency and historical inflation.