IDEAS home Printed from https://ideas.repec.org/a/sae/envirc/v29y2011i6p1073-1086.html
   My bibliography  Save this article

The Role of Government in Disaster Management: The Case of the Hebei Spirit Oil Spill Compensation

Author

Listed:
  • So-Min Cheong

    (Department of Geography, 1475 Jayhawk Blvd, 213 Lindley Hall, University of Kansas, Lawrence, KS 66045-7613, USA)

Abstract

Despite trends toward decentralized disaster management inclusive of local governments, civil organizations, and the private sector, we see centralized management and strong government involvement in the International Convention on Civil Liability for Oil Pollution Damage and the International Oil Pollution Compensation's compensation for large oil spills around the world including the Hebei Spirit oil spill in Korea. Why does the government inevitably become involved and provide a portion of the compensation when the settlement is to occur between the insured company and the affected groups and individuals? To answer this question I examine government's role in disaster management, broadly, and the role of government in disaster compensation, specifically, examining the case of the Hebei Spirit oil spill that occurred off the coast of Korea in December 2007. We witness some structural constraints as well as local-specific reasons for centralization in the Korean case. The slow progress of compensation was a major structural constraint that prompted central government involvement. Moreover, the lack of skills and knowledge on the part of affected individuals and groups regarding compensation procedures, a culture of dependence on the central government, and the negative impact of geographic proximity in the distribution of relief funds further increased the role of central government in oil spill compensation. The case of the Hebei Spirit oil spill emphasizes the advantages of a nuanced approach to disaster management—one that recognizes that decentralized management may not be feasible or successful in every aspect of the response. Further research is necessary to understand why disaster compensations including oil spill cases are more centralized than other types of disaster management.

Suggested Citation

  • So-Min Cheong, 2011. "The Role of Government in Disaster Management: The Case of the Hebei Spirit Oil Spill Compensation," Environment and Planning C, , vol. 29(6), pages 1073-1086, December.
  • Handle: RePEc:sae:envirc:v:29:y:2011:i:6:p:1073-1086
    DOI: 10.1068/c10170
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1068/c10170
    Download Restriction: no

    File URL: https://libkey.io/10.1068/c10170?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kaplow, Louis, 1991. "Incentives and Government Relief for Risk," Journal of Risk and Uncertainty, Springer, vol. 4(2), pages 167-175, April.
    2. Falleti, Tulia G., 2005. "A Sequential Theory of Decentralization: Latin American Cases in Comparative Perspective," American Political Science Review, Cambridge University Press, vol. 99(3), pages 327-346, August.
    3. Saundra Schneider, 2008. "Who's to Blame? (Mis) perceptions of the Intergovernmental Response to Disasters," Publius: The Journal of Federalism, CSF Associates Inc., vol. 38(4), pages 715-738, Fall.
    4. Joanne Linnerooth-Bayer & Aniello Amendola, 2000. "Global Change, Natural Disasters and Loss-sharing: Issues of Efficiency and Equity," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 25(2), pages 203-219, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Frimpong Boamah, Emmanuel, 2018. "Constitutional economics of Ghana’s decentralization," World Development, Elsevier, vol. 110(C), pages 256-267.
    2. Jef Mot & Michael Faure, 2019. "Public authority liability and the cost of disasters," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 44(4), pages 760-783, October.
    3. Steven Shavell, 2014. "A General Rationale for a Governmental Role in the Relief of Large Risks," NBER Working Papers 20192, National Bureau of Economic Research, Inc.
    4. Lorilee A. Medders & Charles M. Nyce & J. Bradley Karl, 2014. "Market Implications of Public Policy Interventions: The Case of Florida's Property Insurance Market," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 17(2), pages 183-214, September.
    5. Marius Constantin PROFIROIU & Septimiu Rares SZABO, 2016. "Outsourcing vs decentralisation: A comparative analysis in Central and Eastern Europe," Eco-Economics Review, Ecological University of Bucharest, Economics Faculty and Ecology and Environmental Protection Faculty, vol. 2(2), pages 3-26, December.
    6. Davlasheridze, Meri & Fisher-Vanden, Karen & Allen Klaiber, H., 2017. "The effects of adaptation measures on hurricane induced property losses: Which FEMA investments have the highest returns?," Journal of Environmental Economics and Management, Elsevier, vol. 81(C), pages 93-114.
    7. Marielle Brunette & Stéphane Couture & Serge S. Garcia, 2011. "Determinants of insurance demand against forest fire risk: Evidence from experimental and real world data," Post-Print hal-01191123, HAL.
    8. Ginger Turner & Farah Said & Uzma Afzal, 2014. "Microinsurance Demand After a Rare Flood Event: Evidence From a Field Experiment in Pakistan," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 39(2), pages 201-223, April.
    9. Kasahara Yuri, 2013. "Should I stay or should I go? A comparative study of banking sector policies and the strategies of Central American business groups," Business and Politics, De Gruyter, vol. 14(4), pages 1-43, January.
    10. Tatyana Deryugina & Barrett Kirwan, 2018. "Does The Samaritan'S Dilemma Matter? Evidence From U.S. Agriculture," Economic Inquiry, Western Economic Association International, vol. 56(2), pages 983-1006, April.
    11. Rachel J. Huang & Larry Y. Tzeng, 2007. "Insurer's insolvency risk and tax deductions for the individual's net losses," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 32(2), pages 129-145, December.
    12. Raj Chetty & Amy Finkelstein, 2012. "Social Insurance: Connecting Theory to Data," NBER Working Papers 18433, National Bureau of Economic Research, Inc.
    13. Craig E. Landry & Dylan Turner & Daniel Petrolia, 2021. "Flood Insurance Market Penetration and Expectations of Disaster Assistance," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(2), pages 357-386, June.
    14. Wu, T.C. Michael & Yang, C.C., 2014. "Income tax deductions for losses as insurance revisited," Economic Modelling, Elsevier, vol. 41(C), pages 274-280.
    15. Marielle Brunette & Laure Cabantous & Stéphane Couture & Anne Stenger, 2009. "Assurance, intervention publique et ambiguïté : une étude expérimentale auprès de propriétaires forestiers privés," Économie et Prévision, Programme National Persée, vol. 190(4), pages 123-134.
    16. Wu, T.C. Michael & Yang, C.C., 2012. "The welfare effect of income tax deductions for losses as insurance: Insured- versus insurer-sided adverse selection," Economic Modelling, Elsevier, vol. 29(6), pages 2641-2645.
    17. Paweł Doligalski & Abdoulaye Ndiaye & Nicolas Werquin, 2023. "Redistribution with Performance Pay," Journal of Political Economy Macroeconomics, University of Chicago Press, vol. 1(2), pages 371-402.
    18. Leonardo E Letelier-Saavedra & José L Sáez-Lozano, 2015. "Fiscal decentralization in specific areas of government: an empirical evaluation using country panel data," Environment and Planning C, , vol. 33(6), pages 1344-1360, December.
    19. Brinkerhoff, Derick W. & Johnson, Ronald W., 2009. "Decentralized Local Governance In Fragile States: Learning From Iraq," MPRA Paper 21505, University Library of Munich, Germany.
    20. Bernard Michael Gilroy, 1991. "Schweizerische Pflichtlagerhaltung und ihre Finanzierung," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 127(III), pages 431-443, September.

    More about this item

    Statistics

    Access and download statistics

    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:sae:envirc:v:29:y:2011:i:6:p:1073-1086. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: SAGE Publications (email available below). General contact details of provider: .

    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.