From an economic perspective tort law is to serve two important functions: deterrence of wrongdoers and victim compensation. We can easily construct examples of torts leading to small and widespread harm for which it is questionable whether a rational victim will initiate an individual lawsuit....

In the law and economics literature liability is generally regarded as an instrument which provides potential tortfeasors with incentives for optimal care taking. The question, however, arises whether liability can still provide those incentives when risks are unknown. That is the central...

This Article suggests that in addressing problems of environmental degradation in developing countries, policymakers and scholars have neglected the important question of regulatory design. While a country’s long-term improvement in environmental conditions almost certainly depends on...

The paper consists of two parts: a theoretical part followed by a practical part. On the basis of the economic literature concerning environmental law and economic development it is illustrated how criteria can be developed to examine whether specific environmental policy instruments can be used...