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R. Scott Brown & Ian Savage
The Economics Of Double-Hulled Tankers
A cost-benefit analysis is conducted on the double-hull
requirements for oil tankers in United States' waters contained in
the Oil Pollution Act of 1990. The benefits of reduced spillage
are compared with the increased construction and operations costs
of double-hulled vessels. In the most probable scenario, the
expected benefits are only 20% of the expected costs. Double-hulls
do not even show a positive net present value in the most favorable
assumptions. Even if double-hulls prevent all of the spillage that
occurs due to collisions and groundings, and that the damage per
gallon spilled is as extensive as in the "Exxon Valdez" incident,
the benefits are under half of the costs.
"The Economics Of Double-Hulled Tankers" by R. Scott Brown and Ian Savage was published in
Maritime Policy and Management Volume 23:2 (April-June 1996), pages 167-175.
View the earlier manuscript version of this paper [11 pages, 49 kb PDF].
I would be pleased to answer any detailed questions that you may
have on this paper, and welcome the opportunity to add what I can
to informed formed public debate of this issue.
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