NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Oscar Cristi

Universidad de San Sebastián

E-Mail: oscar.cristi@uss.cl
Institutional Affiliation: Universidad de San Sebastián

NBER Working Papers and Publications

January 2016An Illiquid Market in the Desert: Estimating the Cost of Water Trade Restrictions in Northern Chile
with Eric C. Edwards, Gonzalo Edwards, Gary D. Libecap: w21869
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.

Published: Eric C. Edwards & Oscar Cristi & Gonzalo Edwards & Gary D. Libecap, 2018. "An illiquid market in the desert: estimating the cost of water trade restrictions in northern Chile," Environment and Development Economics, vol 23(06), pages 615-634. citation courtesy of

 
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