Estimating a meta-damage regression model for large accidental oil spills

Oil spills cause major damage to both a wide range of economic sectors and the environment. It is therefore important to anticipate the potential damage caused by these types of disasters, which can occur under many different and unpredictable circumstances. In this paper we study the main determining factors of the damage caused by oil spills, focusing in particular on the role played by the legislation applied in preventing these accidents. We find that more restrictive legislation reduces the economic damage caused by vessel oil spills. Based on the results of this international meta-regression, we are able to predict the marginal contributions to the damage function of the most relevant causing factors. These estimated damages can be used for rapid evaluations in the future, in cases where a direct damage assessment is not possible. ► We study the main determinants of the damage caused by vessel oil spills. ► We pay special attention to the legislation in preventing such accidents. ► As far as we know, this is the first worldwide meta- damage analysis of oil spills. ► We find that a more restrictive legislation reduces the economic damage caused by oil spills. ► Estimates can be used for predictions when direct assessments are not possible.