IDEAS home Printed from https://ideas.repec.org/a/ids/ijgeni/v31y2009i3-4p310-330.html
   My bibliography  Save this article

The financial hedging of contributions by oil firms to the IOPC Funds

Author

Listed:
  • Andre Schmitt
  • Sandrine Spaeter

Abstract

The liability and compensation for the damage caused by maritime oil spills have been regulated by the 1992 International Convention on Civil Liability for Oil Pollution Damage (1992 Civil Liability Convention) and the 1992 International Oil Pollution Compensation Fund Convention (1992 IOPC Fund). In this compensation regime, the contributions of oil firms to the IOPC Funds are based on the aggregate risk of the Funds and are assessed each time an oil spill is registered. In this paper, we present the main characteristics of such a compensation regime and explain why oil firms would benefit from hedging their contributions to the Funds through standard insurance combined with investment on capital markets. A simulation of a combined hedging strategy using stop-loss contracts is also proposed.

Suggested Citation

  • Andre Schmitt & Sandrine Spaeter, 2009. "The financial hedging of contributions by oil firms to the IOPC Funds," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 31(3/4), pages 310-330.
    • Handle: RePEc:ids:ijgeni:v:31:y:2009:i:3/4:p:310-330
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=27644
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijgeni:v:31:y:2009:i:3/4:p:310-330. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=13 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.