Opaluch, James J.; Grigalunas, Thomas A. - In: RAND Journal of Economics 15 (1984) 1, pp. 142-151
Under the OCS Lands Act, firms are strictly liable for damages from oil spills. To the extent that this liability rule causes firms to internalize environmental risks, incentives for damage avoidance behavior are provided. Using data from the 1979 Georges Bank lease sale, we use a robust...