Gulf War Oil Spill of 1991 Essay Example | Topics and Well Written Essays - 1500 words

Gulf War Oil Spill of 1991 - Essay Example Whereas various economic costs are comparatively not that difficult to approximate, for instance the lost profits within the commercial fishing industry, however various costs like the lost aesthetic and ecological values are complex to quantify. The policies on oil spills decree that environmental renovation be carried out as reparation for the losses and damages. It is important to consider preliminary data in regard to the potential economic costs of the Gulf War oil spill, observing that the ecological destructions to wildlife and habitats are probably to be greater as compared to the market-based costs like the lost profits of both tourism and fishing. The Gulf War oil spill evokes the thought on economic valuation of risk. A careful though is given to the development o policies amidst oil spill risk and the relevance of standard risk analysis established as the right methodology for economic risk appraisal. This discussion has significant inferences for other disputes where disastrous risk is at issue, for instance nuclear power and global climate change. Economics postulates that the efficient prices for both goods and services ought to reflect all social benefits and costs but not merely the market interaction of demand and supply. Apparently the economic impact of the spill was a negative inclination due to the losses that were incurred in the process. Very many oil spills occur yearly within the marine surroundings. The degree of these spills is comparatively minor, not exceeding 100 gallons, and has insignificant damages to the economy. Larger oil spills such as the Gulf War oil spill of 1991, result in significant destruction to both the environment and economy. The Gulf War oil spill adversely impacted on aquatic plants and organisms, including fish (Saenger, 1994), thus significantly leading to a fall in fish supply and a corresponding decline in revenue. Further, polluted beaches were increasingly unattractive