Northwestern University  
IAN SAVAGE
DEPARTMENT OF ECONOMICS

Department of Economics   >   Ian Savage   >    Maritime Safety

Ian Savage Photo The Economics Of Double-Hulled Tankers

R. Scott Brown and Ian Savage (1996). The economics of double-hulled tankers. Maritime Policy and Management 23(2): 167-175.
[Published Version]  [Journal Website]  [Manuscript Version]

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.


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