- The Fondazione Eni Enrico Mattei series on Economics, the Environment and Sustainable Development
Edited by Carlo Carraro and Vito Fragnelli
Chapter 7: Co-Insurance Games and Environmental Pollution Risk
7. Co-insurance games and environmental pollution risk Vito Fragnelli and Maria Erminia Marina 1. INTRODUCTION In this chapter we consider a situation in which a large risk has to be insured and in particular the case of environmental pollution risks that depend on ﬁrms that in their production processes may have as a side-eﬀect the release of polluting wastes that damage the environment. Firms may interact with the environment in diﬀerent ways; more precisely they can alter the basic environment, inﬂuence the possibility of using it if they damage public or private goods, compromise human health directly or indirectly, contaminate biological resources and ecosystems. The consequences may be described as damage to persons and/or materials or interruption of various activities (industrial, agricultural or recreational). We want to recall some environmental pollution risks according to a simple classiﬁcation: ● ● ● ● ● air pollution, generated by emissions, harmful gases, exhaust fumes, stenches, waste disposal, chemical production; water pollution, when factories discharge eﬄuents into rivers; soil pollution , deriving from rubbish, solid wastes, industrial wastes, for example from farms that use chemical manure or pesticides or from factories that dispose of their waste in the soil; marine pollution, where coastal ﬁrms get rid of waste and sewage into the sea or resulting from oil tanker accidents; acoustic pollution, due to high noise levels and vibrations with risk to workers and neighbouring inhabitants. In order to limit the costs related to environmental risk a ﬁrm generally eﬀects an insurance policy that covers...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.