Theoretical Framework of Economic Analysis of Law Governing Marine Pollution

The discipline of law and economics has attracted both lawyers and economists in the environmental field but scholarly work focusing on the economic analysis of law governing marine pollution is rather limited and lacking in clarity. This article sets out the theoretical framework on which is based the author's more extensive study of this subject. In the article, the legal and economic approaches to environmental pollution, is first addressed followed by a discussion of two generations of economic analysis of environmental law. The first generation of studies explores the basic economic analysis of externalities and the associated fundamental common law doctrines and institutions. At the second evolutionary stage, the emphasis has moved to a new platform touching on the influence of economics on statutory prescriptions and rules of tortious liability as well as civil remedies and penal sanctions where the enquiry is more microcosmic. The special features of marine pollution are discussed in detail and the significance of distinguishing between accidental spills, operational discharges and deliberate dumping of wastes is highlighted from the legal and law and economics perspectives. It is stated in conclusion that the multilateral and trans-national dimension of ship-source marine pollution is central to the articulation of law and policy and that a sound international legal regime should take into account the economic analysis of this branch of the law.