Keywords: economic modelling, environmental regulation, oil spills, Baltic Sea, regulation enforcement, Black Sea, stochastic modelling, policy
Econometric modelling, estimation and policy analysis of oil spill processes
This paper explores approaches to model specification suitable for empirical investigation of a stochastic oil spill model. We focus on the effects of economic incentive measures on the frequency of oil spills, spill size, and volume of oil spilled. We look into the relationships between parameters that describe the spill generation process and the enforcement effort, using data for the Black and Baltic Seas.