Environmental justice has become a major issue in the discourses of environment. The calls for environmental equity and justice are now part of major environmental negotiations like the UNFCCC and the Kyoto Protocol, to give some examples. In this paper I locate the issues of environmental...

We compare the performance of liability rules for managing environmental disasters when third parties are harmed and cannot always be compensated. A firm can invest in safety to reduce the likelihood of accidents. The firm's investment is unobservable to authorities. Externality and asymmetric...