Compensation and Community Corrosion: Perceived Inequalities, Social Comparisons, and Competition Following the Deepwater Horizon Oil Spill

Abstract

After disasters, victim compensation programs are typically associated with individual healing and community rebuilding. But post-disaster compensation systems also have the potential to introduce confusion and competition, further fraying the social fabric of communities affected by trauma. To assess the perceived effects of disaster compensation processes on community social relations, as well as the mechanisms that underlie such effects, we turn to the case of the Deepwater Horizon oil spill, after which BP implemented one of the largest compensation systems in U.S. history. Using data from interviews of residents of four Gulf Coast communities, we examine the extent to which this claims process hindered efforts to recover from this disaster. Our data suggest that while BP money helped some residents in the Gulf during a difficult economic time, many interviewees perceived uncertainty, randomness, and unevenness in the compensation process, which led to negative social comparisons and competition among community members. Because of this animosity, we argue that BP's compensation system was a disruptive mechanism that contributed to community corrosion and introduced another source of psychological stress into already traumatized areas.

Untangling the disaster-depression knot: The role of social ties after Deepwater Horizon

“…10 Indeed, research on the post-DHOS compensation process suggests that perceptions of randomness and lack of transparency in the distribution of claims resulted in negative social comparisons and competition that led to a corrosive effect in the community. 44 Such characteristics of corrosive communities may explain why we observe a negative impact of the oil spill on cognitive social capital and social support.…”

The Deepwater Horizon Oil Spill Through the Lens of Human Health and the Ecosystem

“…The spill uncovered a credibility gap in the ability of the current U.S. policy network (e.g., Clean Water Act, Oil Pollution Act) to prevent ecological disasters, and protect human and ecological health, and help populations get compensation for their losses [54]. Minority communities - such as Vietnamese American communities - along the Gulf may have been disproportionately impacted by the spill [56]. Other research has demonstrated the toll levied on communities navigating the claims process [56], and due to language and cultural barriers, these insular communities may have faced greater barriers in seeking remediation [55].…”

“…Minority communities - such as Vietnamese American communities - along the Gulf may have been disproportionately impacted by the spill [56]. Other research has demonstrated the toll levied on communities navigating the claims process [56], and due to language and cultural barriers, these insular communities may have faced greater barriers in seeking remediation [55]. Health policies are created to inherently provide protection and either incentives or fines to promote adherence.…”

John Rawls’ Concept of the Reasonable: A Study of Stakeholder Action and Reaction Between British Petroleum and the Victims of the Oil Spill in the Gulf of Mexico

“…"Interim payments for many claimants came quickly, designed to replace one month of lost income due to fisheries and tourism closure. From April 25th through August 23rd, BP received 154,000 claims and wrote 127,000 checks covering $399 million in estimated damages" (Mayer et al 2015). Despite this seemingly impressive rate of paying out, "BP's claims data from that summer suggest that only one third of the total claims submitted were actually fulfilled" (Mayer et al 2015).…”