Civil Liability for Marine Oil Pollution in China and Europe

This chapter analyses the European and Chinese legal regimes dealing with marine oil pollution compensation from a comparative and economic perspective. Historically, EU countries have always been playing an active role in promoting higher standards of compensation as they were often victims of major oil spills. The legal regime in EU countries in compensating marine oil pollution victims is mainly in line with the international conventions, which is based on strict liability with an upper limit on the amount of compensation, plus a compulsory financial guarantee, and a compensation fund. Whereas in China, the compensation regime is only implementing the first layer of the international (and thus EU) regime, which is strict liability, limitation of liability, compulsory insurance. As for the compensation fund, China did not join the international fund as the EU countries do, but it has adopted a domestic fund. The efficiencies and effectiveness of these two regimes are thus analysed in this chapter through the use of economic analysis of law.