Optimal oil tanker size with regard to environmental impact of oil spills

This paper considers optimal tanker size in view of the environmental effects of oil spills. A model is developed that incorporates the tradeoff between small but frequent spills with many tankers, and the relatively less frequent but larger and more concentrated spills with a smaller fleet of larger ships. A procedure is suggested to incorporate the environmental impact of oil spills in the model without quantifying them in monetary units. A closed form solution set for optimal tankers size is obtained and some numerical results are presented.