by Melissa Keever

Abstract 

This paper explores the financial impact of the Oil Pollution Act (OPA) on oil companies for oil spills. Total penalty per barrel, including civil and criminal penalties, and total cost per barrel for oil spills are analyzed prior OPA and post OPA. Difference-in-differences estimation is used to determine if penalties and costs for an oil spill increased post OPA in accordance with the purpose of the OPA to hold companies more financially responsible for oil spills, especially damaging ones. With the exception of criminal penalty per barrel, the analysis suggests that the OPA is not achieving the desired financial impact.

Professor Christopher Timmins, Faculty Advisor

JEL Codes: K2

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