• Media type: E-Book
  • Title: An Illiquid Market in the Desert : Estimating the Cost of Water Trade Restrictions in Northern Chile
  • Contributor: Edwards, Eric C. [Author]; Cristi, Oscar [Other]; Edwards, Gonzalo [Other]; Libecap, Gary D. [Other]
  • Published: [S.l.]: SSRN, [2016]
  • Published in: NBER Working Paper ; No. w21869
  • Extent: 1 Online-Ressource (43 p)
  • Language: English
  • Origination:
  • Footnote: Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 2016 erstellt
  • Description: This paper estimates the cost of a policy to restrict water trades to mining firms in northern Chile to protect riparian ecosystems and indigenous agriculture. In response to the policy, mining firms have developed high-cost desalination and pumping facilities to secure adequate water supplies. We develop a methodology and estimate the cost of market transactions that fail to occur due to the policy. Lost trade surplus is estimated at $52 million per year. Without trade restrictions, around 86% of the remaining agricultural water in the region would be transferred to mining
  • Access State: Open Access