Liability Sharing and the Role of Insurance for Environmental Accidents

  • Kazuhiko SakaiEmail author
  • Moriki Hosoe


In this paper, we consider the economy composed of the firm that requires transportation of raw materials and carriers, and then we examined the problem of whether extended liability or compulsory insurance would be a more desirable system for environmental accidents such as oil pollution. Then we show that extended liability can be a socially desirable system rather than the compulsory insurance which is the current system, because extending liability to the firm has the advantage of providing a high accident prevention incentive to the carrier through a transportation contract.


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© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  1. 1.Faculty of EconomicsKurume UniversityKurume-shi, FukuokaJapan
  2. 2.Emeritus ProfessorKyushu UniversityFukuoka-Shi, FukuokaJapan

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