Cane looks into non-contractual liability rules, and whether specific compensation rules are needed for environmental harm. Two recent catastrophes prompt Cane's discussion on how this can develop. The two incidents took place in Europe: in 1998 at Aznalcollar in southern Spain, contaminated mud and water polluted watercourses after the collapse of a wall in a waste dump collapsed. In 2000 in north-western Romania, the collapse of a dam led to toxic sludge contaminating rivers in Romania, Hungary and Serbia. 2001 JEL 13
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