bp oil spill – assessing economic damages
When a disaster caused by an oil spill occurs, a large amount of data to explain the meaning of what happened is produced. But how can we estimate the damages that do not refer to a market price? …
When a disaster caused by an oil spill occurs, a large amount of data to explain the meaning of what happened is produced. But how can we estimate the damages that do not refer to a market price? In order to better understand the consequences and correctly evaluate a natural disaster, three different categories of economic damages can be considered: 1) the clean up and restoration costs; 2) the use value damages; and 3) the passive use value damages. With these methods it will be possible to understand how much money a company must pay for the damages produced and begin thinking in terms of a new kind of CSR, a corporate social responsibility that can balance a revenue in the short term with the sustainability in the long term.