Determinants of the property damage costs of tanker accidents

摘要

This study investigates determinants of the vessel, oil cargospillage, and other-property damage costs of tanker accidents. Tobitestimation of a three-equation recursive model suggests that, amongtypes of tanker accidents, fire/explosion accidents incur the largestvessel damage costs, but the smallest oil cargo spillage costs.Alternatively, grounding accidents incur the smallest vessel damagecosts, but the largest oil cargo spillage costs, reflecting thedifficulty of controlling oil cargo spillage subsequent to suchaccidents. Also, oil cargo spillage costs are lower for US flagtanker accidents. A dollar of vessel damage cost increases other-property damage cost by dollar0.06, whereas a dollar of oil cargospillage increases this cost by dollar1.55.