An Illiquid Market in the Desert: Estimating the Cost of Water Trade Restrictions in Northern Chile /
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 d...
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- Weitere Titel:
- Illiquid Market in the Desert
- 1. Verfasser:
- Körperschaft:
- Weitere Verfasser:
- , ,
- Format:
- Elektronisch E-Book
- Sprache:
- Englisch
- Veröffentlicht:
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Cambridge, Mass.
National Bureau of Economic Research
2016.
- Zusammenfassung:
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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.
- Umfang:
- 1 online resource: illustrations (black and white);
- Anmerkungen:
- January 2016.
- Schlagworte: