PROTECTION OF MARINE RESOURCES - THE US OIL POLLUTION ACT OF 1990 ANDTHE FUTURE OF THE MARITIME INDUSTRY

Media coverage of 1989 Exxon Valdez oil spill in US coastal waters enh anced public awareness of marine pollution and made Alaskan natural re sources valuable for more individuals. Consequently, political pressur es led the US Congress to enact comprehensive legislation - the Oil Po llution Act of 1990 (OPA90), with the aim of reducing the number and t he volume of accidental oil spills and also minimizing damage to marin e and coastal natural resources. A methodology is proposed which incor porates the impact of oil pollution regulations, public awareness, nav igational risk and oil spills on the cost of oil transfer to maritime industry. Estimated benefit-cast ratios of OPA90 regulations such as t he double hull requirement and vessel response plans are found to be l ess than one even when natural resources are valued at post-Exxon Vald ez levels.