Oil spills, governance and institutional performance: The 1992 regime of liability and compensation for oil pollution damage

The oil industry is nowadays of vital importance for industrialized and developing countries. However, oil transportation continues to be a highly risky activity, both for the actors involved in its production and exchange and for the rest of society, producing enormous negative externalities. This article delves into the international system of liability and compensation for oil pollution damage (1992 CLC/CF) from the perspective of New Institutional Economics, evaluates its operation in practice across countries and its evolution over time. It reveals substantial heterogeneity in terms of performance across nations and the main drivers and obstacles to its transformation.