Measuring Damages to Marine Natural Resources from Pollution Incidents under CERCLA: Applications of an Integrated Ocean Systems/Economic Model

Abstract

Several pieces of federal environmental regulation establish strict liability for damages from spills of oil and hazardous substances. This paper discusses the Natural Resource Damage Assessment Model for Coastal and Marine Environments (NRDAMICME), which is to be used for assessing damages from spills of oil or hazardous substances in coastal and marine environments under CERCLA and the Clean Water Act, as amended. The approach employs an integrated ocean systems/economic model to simulate the physical fates and biological effects of a spill and to measure the resulting economic damages. To illustrate application of the model, selected results are presented for hypothetical spills of a number of substances in a variety of environments. The results show that the damage function depends on the physical and chemical properties of the substance spilled, the season, and the environment in which the spill occurs.Environmental Economics and Policy, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy, Risk and Uncertainty,