Abstract
This paper discusses some possible assumptions applied to justify lender liability for environmental damage . In the paper’s first part views are discussed as to who, the lender or the borrower, can be regarded as the cheapest cost avoider in light of the cost-benefit analysis of environmental liability. Subsequently, the paper discusses a model of lender conduct under international codes of conduct for financial institutions (e.g. the Equator Principles ), based on ethical justification. The conclusion compares the approaches.
This research has been financed by the National Science Centre, Poland within the framework of the research project: 2015/17/B/HS5/00495.
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Notes
- 1.
- 2.
Hooley, 2001, p. 405.
- 3.
Calabresi, 1975, p. 212.
- 4.
Church 1988, p. 673.
- 5.
Church 1988, p. 675.
- 6.
Church 1988, p. 673.
- 7.
- 8.
Church 1988, p. 676.
- 9.
Hooley 2001, p. 405.
- 10.
Church 1988, p. 677.
- 11.
Church 1988, p. 677.
- 12.
Hooley 2001, p. 405.
- 13.
Hooley 2001, p. 405.
- 14.
Rightly pointed out by Church 1988, p. 678.
- 15.
Church 1988, p. 678.
- 16.
Church 1988, p. 679.
- 17.
Church 1988, p. 681.
- 18.
Church 1988, p. 681.
- 19.
Church 1988, p. 682.
- 20.
See generally Hirschleifer 1976, pp. 290–296.
- 21.
Church 1988, p. 686.
- 22.
Church 1988, pp. 682–686, discusses this notion, taking into consideration the previous CERCLA liability regime.
- 23.
Plato-Shinar and Gelpe 2011, p. 367.
- 24.
- 25.
Plato-Shinar and Gelpe 2011, p. 367.
- 26.
Plato-Shinar and Gelpe 2011, p. 367.
- 27.
Plato-Shinar and Gelpe 2011, p. 368.
- 28.
Plato-Shinar and Gelpe 2011, p. 368.
- 29.
42 U.S.C. §§ 9601–9675 (1988). On legislative history of CERLCA see Wolford 1992, p. 1161.
- 30.
On ‘potentially responsible parties’ see Wolford 1992, p. 1161.
- 31.
42 U.S.C § 9601 (20) (A).
- 32.
901 F.2d 1550 (11th Cir.), rehearing denied, 911 F.2d 742 (11th Cir. 1990), cert. denied, 111 S. Ct. 752 (1991).
- 33.
Wolford 1992, p. 1198.
- 34.
Wolford 1992, p. 1199.
- 35.
Feess 1999, p. 235.
- 36.
I draw here on Plato-Shinar and Gelpe 2011, p. 370.
- 37.
Hooley 2001, p. 416.
- 38.
Plato-Shinar and Gelpe 2011, p. 370.
- 39.
- 40.
Pub L No 104–208, §§ 2501–05, 110 Stat 3009 (1996).
- 41.
See a comprehensive analysis by Plato-Shinar and Gelpe 2011, pp. 370–371.
- 42.
The list of member institutions is available under http://www.equator-principles.com/index.php/members-reporting.
- 43.
- 44.
The Equator Principles, Disclaimer.
- 45.
The Equator Principles, Preamble.
- 46.
The Equator Principles, Scope.
- 47.
Category A comprises projects with potential significant adverse environmental and social risks and/or impacts that are diverse, irreversible or unprecedented. Category B comprises projects with potential limited adverse environmental and social risks and/or impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation measures. Category C comprises projects with minimal or no adverse environmental and social risks and/or impacts, see the Equator Principles, Principle 1.
- 48.
The Equator Principles, Exhibit II comprises an Illustrative List of Potential Environmental and Social Issues to be Addressed in the Environmental and Social Assessment Documentation.
- 49.
- 50.
- 51.
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Tereszkiewicz, P. (2017). Lender Liability for Environmental Damage – Some Preliminary Thoughts on Efficency and Justification. In: Mathis, K., Huber, B. (eds) Environmental Law and Economics. Economic Analysis of Law in European Legal Scholarship, vol 4. Springer, Cham. https://doi.org/10.1007/978-3-319-50932-7_18
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