Featured Research

from universities, journals, and other organizations

Wide gap in compensation from '07 South Korean oil spill

Date:
September 3, 2014
Source:
University of Texas at Dallas
Summary:
Scholars have found a considerable gap between the economic loss claimed by residents and the compensation they received after the Hebei Spirit oil spill. Only 11 percent of the claims were approved for compensation.

Although nearly eight years have passed since a major oil spill in South Korea, compensation and recovery efforts appear to be far from satisfactory, and the affected communities continue to suffer the effects of the disaster.

Related Articles


UT Dallas' Dr. Dohyeong Kim, second-year doctoral student Soojin Min and two Korean scholars have found a considerable gap between the economic loss claimed by residents and the compensation they received after the Hebei Spirit oil spill. Only 11 percent of the claims were approved for compensation.

"I was surprised," said Kim, the lead author of the findings that were recently published in Ocean & Coastal Management. "Eleven percent is really low, compared to the other countries. It's a shame. My initial impression when I saw that finding was, 'Citizens have a lot less organized power in Korea.' It is striking to me."

The oil spill, about one-third of the size of the Exxon Valdez spill in Alaska in 1989, took place in 2007 when a barge hit the tanker Hebei Spirit, creating a hole in the cargo area. The leaking crude oil reached more than 200 miles away in less than a month, covering the rocky shore, sandy beaches and coastal wetlands.

Kim, associate professor of public policy and political economy in the School of Economic, Political and Policy Sciences, was intrigued by the disaster's social and ecological impacts as well as the compensation implications for those affected -- particularly owners of small-scale fisheries and tourism businesses.

Kim said understanding the reasons behind the compensation gap is crucial for future oil spills.

Based on the findings, the researchers determined three possible reasons for the low percentage of compensation:

  • International Oil Pollution Compensation Funds are very strict and only allow the documented claims to be approved.
  • The focus was on the loss of direct use value. The social and ecological impacts to the ecosystems and the communities were not considered.
  • No economic evaluations conducted by academic scholars were considered.

When the researchers reviewed how other countries compensated for large-scale oil spills, they found that it was much greater -- even more than 100 percent of the claims -- after extensive governmental and legal involvements.

"I hope this research will help reduce this gap in the future and highlight the necessity for the compensation stakeholders to consider economic evaluation studies, such as studies using the contingent valuation method that some countries use to figure compensation," Min said.

"Korea is a very pro-enterprise country," Kim said. "It needs to support the big enterprises like Samsung and Hyundai and LG because they have a big contribution to the Korean reputation, but sometimes they also have negative effects on actual communities in Korea because of the labor system and the environmental impacts."

The researchers hope the study helps inform decision-makers.

"I hope this paper gets some attention from not only Korea but other parts of the world. I hope, in the future, policymakers want to use these types of findings to be a little more toward the pro-community side instead of pro-enterprise." he said.

Dr. Gi-geun Yang of Wonkwang University and Dr. Chul-hwan Koh of Seoul National University also contributed to the study.


Story Source:

The above story is based on materials provided by University of Texas at Dallas. Note: Materials may be edited for content and length.


Journal Reference:

  1. Dohyeong Kim, Gi-geun Yang, Soojin Min, Chul-hwan Koh. Social and ecological impacts of the Hebei Spirit oil spill on the west coast of Korea: Implications for compensation and recovery. Ocean & Coastal Management, 2014; DOI: 10.1016/j.ocecoaman.2014.05.023

Cite This Page:

University of Texas at Dallas. "Wide gap in compensation from '07 South Korean oil spill." ScienceDaily. ScienceDaily, 3 September 2014. <www.sciencedaily.com/releases/2014/09/140903105807.htm>.
University of Texas at Dallas. (2014, September 3). Wide gap in compensation from '07 South Korean oil spill. ScienceDaily. Retrieved November 24, 2014 from www.sciencedaily.com/releases/2014/09/140903105807.htm
University of Texas at Dallas. "Wide gap in compensation from '07 South Korean oil spill." ScienceDaily. www.sciencedaily.com/releases/2014/09/140903105807.htm (accessed November 24, 2014).

Share This


More From ScienceDaily



More Earth & Climate News

Monday, November 24, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Ebola-Hit Sierra Leone's Late Cocoa Leaves Bitter Taste

Ebola-Hit Sierra Leone's Late Cocoa Leaves Bitter Taste

AFP (Nov. 23, 2014) The arable district of Kenema in Sierra Leone -- at the centre of the Ebola outbreak in May -- has been under quarantine for three months as the cocoa harvest comes in. Duration: 01:32 Video provided by AFP
Powered by NewsLook.com
NY Gov. on Flood Prep: 'prepared for the Worst'

NY Gov. on Flood Prep: 'prepared for the Worst'

AP (Nov. 23, 2014) First came the big storm. Now comes the big melt for residents of flood-prone areas around Buffalo. New York's governor says officials are preparing for the worst as the temperature is expected to rise and potentially melt several feet of snow. (Nov. 23) Video provided by AP
Powered by NewsLook.com
Anglerfish Rarely Seen In Its Habitat Will Haunt You

Anglerfish Rarely Seen In Its Habitat Will Haunt You

Newsy (Nov. 22, 2014) For the first time Monterey Bay Aquarium recorded a video of the elusive, creepy and rarely seen anglerfish. Video provided by Newsy
Powered by NewsLook.com
Raw: Buffalo Residents Digging Out, Helping out

Raw: Buffalo Residents Digging Out, Helping out

AP (Nov. 22, 2014) Hundreds of volunteers joined a 'shovel brigade' in Buffalo, New York on Saturday, as the city was living up to its nickname, "The City of Good Neighbors." Video provided by AP
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Plants & Animals

Earth & Climate

Fossils & Ruins

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins