Compensating Victims for Harms Caused by Pollution and Other Hazardous Substances: A Comparison of American and Japanese Policies

This paper reviews recent American proposals to reform the system for compensating victims of pollution and compares them with the Japanese approach. American proposals fall into three categories: balanced approaches that combine administrative relief with tort reform; proposals that would provide administrative relief but eliminate tort remedies; and proposals to reform tort law which have nothing to say about administrative relief. While American policy‐makers are still groping for a solution, in Japan tort law changes provided the rationale for a system of administrative relief that preserves the victims' right to sue. While the Japanese approach is not perfect, the early development of a policy reduced legal and political uncertainties and provided a stable environment for economic growth.