Who cleans up the oil? A microeconomic study

Although oil spill cleanup requirements have existed in the United States for years, recent increases in oil imports and marine transportation of petroleum products as well as growing environmental concern have exposed a new industry, the Oil Spill Cleanup Industry. This paper explores some of the microeconomic aspects of this industry which has come under increased scrutiny by the general public, big business, and the federal government.In addition to a brief history and definition, several basic questions about the economic viability of the oil spill cleanup industry are raised and explored, and the impact on the industry of cleanup from government sources is examined, both from the perspective of present operations and from apparent future increases in federal participation. The primary dilemma facing the industry, that of providing continued and immediate supply while confronted with stochastic demand, is discussed. The effects of the large spill on the industry both in terms of revenue and ability to meet cleanup requirements is also considered.Information for the paper is drawn from past and continuing involvement in the U.S. Coast Guard's Marine Environmental Protection Program by both authors. The statistical evidence presented here was compiled through personal interviews and from two computerized Coast Guard information systems; PIRS (the Pollution Incident Reporting System), and SKIM (the Spill Cleanup Equipment Inventory System).     

A note on natural production functions

Two techniques are presented for estimation of natural animal populations, both of which may incorporate the effect of pollutants on populations. Both techniques assume specific underlying population dynamics which may not be applicable to certain species or ecosystems. However, both techniques allow for testing the hypothesis that the population dynamics specified is applicable. The techniques are used to criticize two recent empirical investigations of fisheries.     

Intertemporal and intergenerational pareto efficiency: A comment

In a recent issue of this Journal, Sandler and Smith developed an analysis from which they concluded that discounting is Pareto inefficient in an intertemporal context. This comment questions the validity of that conclusion and demonstrates the essential role played by the discount rate in achieving intertemporal Pareto efficiency within a market economy.     

The 1934 floods in Tabriz, N. W. Iran

The disastrous floods of July 1934 in Tabriz are examined in the context of the history of floodinginthe city, which is crossed by a dry stream bed liable to sudden Inundation by mountain torrents from the southeast. Few details of past events have survived, suggesting that relatively little significance has been attached to them. Typically, flood dykes were inadequately maintained. This neglect, combined with a radical alteration in urban topography after 1925, when broad straight avenues were constructed through the old heart of the city, led to serious losses from flooding twice in 1929 and again in 1934. Enhanced perception of the flood risk finally found expression in the adoption of large scale engineering measures to mitigate future events, including strengthening protective dykes and widening the river channel through the city. These works have reduced vulnerability to flooding from river overflow. No long-term detrimental Impact of the 1934 flood has been observed. Some of the physical and social parameters that have influenced the vulnerability of Tabrizinthe past continue to be present both there and elsewhere in Iran, and they may be characteristic also of other regions with comparable natural environments or in a similar stage of socio-economic development.