Financial Assurance Issues of Environmental Liability

1,39
MB

256
stron

927
ID Universiteit Maastricht

2001
rok

Table of contents

Reading Suggestion i

Executive Summaryi

§ 1. Efficiency of the white paper liability regime.i

A. Importance of some theoretical principles..i

B. Mitigated strict liability rule ..i

C. No retroactivityii

D. Defenses .ii

§ 2. Insurability of the white paper liability regimeiii

A. "Willingness to insure" is decisive ..iii

B. Predictabilityiii

C. Advice to insurers.iii

D. Advice to the policy maker..iv

§ 3. Alternative financial arrangements .v

§ 4. Environmental damage without liabilityvii

§ 5. Influence of competition policy viii

List of Abbreviations ix

Chapter 1 Introduction1

§ 1. Purpose of this study ..1

§ 2. Focus on the white paper..1

§ 3. Methodology ..2

A. Comparative law.2

B. Economic analysis .3

C. Integration: comparative law and economics approach .3

§ 4. Policy orientation .4

§ 5. Subsidiarity?4

§ 6. Integration 6

§ 7. Limits .6

§ 8. Goal .7

§ 9. Researchers involved and academic framework ..7

§ 10. Structure 7

Chapter 2 Principles of liability: a theoretical framework.9

§ 1. Introduction .9

§ 2. Goals of accident law: the environmental case ..10

A. Prevention and Compensation..10

B. Optimal liability rules: basic ideas .11

1. Optimal care levels 11

2. Negligence. 12

3. Strict liability 12

4. Differences. 13

5. Bilateral accidents . 13

§ 3. Negligence or strict liability for environmental harm? ..14

A. The model14

B. Negligence ..15

1. Optimal incentives. 15

2. Learned Hand rule . 16

C. Strict liability.17

1. Optimal incentives. 17

2. Influence of the activity level .. 18

3. A test for strict liability 18

D. Legal justifications for strict liability 19

1. Improving the situation of the victim?. 19

2. Redistribution? 20

E. Polluter Pays Principle .20

F. Strict liability for environmental harm? ..22

§ 4. A few refinements .24

A. Information differences 24

B. Insolvency: strict liability versus negligence.24

C. Positive externalities..25

§ 5. White paper on environmental liability..25

A. Balanced approach..25

B. Nuances 26

C. Remedy for insolvency? ..27

§ 6. Environmental regulation..28

A. Criteria for safety regulation .28

1. Information asymmetry as a criterion for regulatory intervention 29

2. Insolvency risk. 29

3. The threat of a liability suit 30

4. Administrative costs . 30

B. The need to regulate environmental pollution..31

C. Safety regulation in practice ..32

D. Necessity to combine liability and regulation ..33

§ 7. Retroactivity? ..34

A. Introduction 34

B. Statutes of limitation..34

C. Principles of efficient and fair compensation 35

D. Examples .36

E. Time lapse and incentives to prevent accidents37

F. Justice and compensation considerations 37

G.White paper: no retroactivity.38

Chapter 3 Possible defenses40

§ 1. Introduction ..40

§ 2. Force majeure..40

A. Economic justification..40

B. Examples: Belgian case law..41

C. Efficient case law.41

§ 3. Justificative effect of following regulation ..42

A. Importance of licenses ..42

B. Position of Dutch legal doctrine and case law..43

C. Economic rationale.43

D. No "second guessing"45

E. Justificative effect in the white paper? .45

§ 4. Development risk ..46

A. Liability to provide incentives for innovation? 46

B. Prospective overruling as a solution to the dilemma.47

C. Development risk defense: incentives to innovate .48

§ 5. Contributory negligence.49

§ 6. "First use"-defense 50

§ 7. Small and medium sized enterprises 52

A. Small firms, small pollution? 52

B. Passing on of environmental costs .53

Chapter 4 Main principles in a few legal systems .55

§ 1. Introduction ..55

§ 2. Legal basis for liability in a few legal systems ..56

A. Belgium and Flanders56

1. Civil law with modern features .. 56

2. Liability for negligence .. 57

a. Fault . 57

b. Damage.. 58

c. Causation .. 60

3. Strict liability 61

a. Civil code.. 61

b. Strict liability in treaties 61

4. Proposals of the Interuniversity Commission.. 63

a. The Interuniversity Commission .. 63

b. Problems with the existing environmental liability system. 64

c. Parts 7 and 9 of the Draft Decree on environmental policy. 64

d. The proposed liability regime. 65

5. Liability of soil clean-up in Flanders 65

a. Waste Decree of 2 July 1981 .. 65

b. Soil Clean-up Decree of 22 February 1995 . 66

c. Liability for new soil pollution .. 66

d. Liability for past pollution 67

6. Summary. 67

B. United Kingdom ..69

1. Negligence, nuisance and strict liability. 69

2. Limits of Rylands v. Fletcher 70

3. Cambridge Water Co. .. 70

C. The 1986 Swedish environmental damage act .71

D. The 1990 German environmental liability act..73

E. France 74

§ 3. Retrospectivity?..76

A. Belgium and Flanders77

B. The Netherlands78

C. United Kingdom ..82

§ 4. Defenses .82

A. Belgium and Flanders83

1. Regulatory compliance defense? 83

2. Interuniversity Commission . 83

3. First use defense . 84

B. The Netherlands84

1. Justificative effect of licences.. 84

2. First use defense . 85

C. Sweden .85

D. Germany ..87

E. France 88