Water use rights markets and water allocat ion: the chilean case
- Resumen
- Economic efficiency is maximized by allocating limited water among alternative uses so that marginal social benefits are equated across the different uses. Numerous authors have presented arguments that water, being a natural resource with varying value for different agents and uses, within clearly defined market constraints will be allocated to its highest valued use through the exchange of some type of property right, either for a limited time period (lease) or in perpetuity (sale). Since the establishment of the water allocation mechanism based on a market of water use rightsin Chile,aseriesofempiricalandtheoreticalstudieshavebeen carriedoutto determine:the existence of a water use rights market and the number transactions; water use rights market efficiency; bargaining, cooperation, and strategic behaviors of market participants; and the marginalgainsfromtrade. Thesestudiesindicatethattheallocationframeworkbasedonamarket allocation system established by the Water Code in 1981 has been efficient from an investment point of view, mainly due to the water use rights security granted by the legislation. This is evidenced by significant investments that have been undertaken by several economic sectors to improve water use efficiency and to increase the availability of groundwater through exploration. Likewise, the free transaction of water use rights, even though in many areas water use rights markets have not been very active, constitutes an efficient reallocation mechanism which has facilitated the reallocation of granted rights.
- Autor
- Donoso, Guillermo
- Palabras Clave
- Comercio y consumo, Agua, Consumo de agua
- Idioma
- Inglés
- Documentos
- Ponencia ( 9 pag, 190 Kb )
- Presentación
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- Documento Final Semanas Temáticas
- Conclusiones Tribuna del Agua
- Existe un Video disponible en el Centro de Documentación