IDEAS home Printed from https://ideas.repec.org/p/wop/bawlad/_022.html
   My bibliography  Save this paper

The Market for Water Rights in Chile: Major Issues

Author

Listed:
  • Monica Brehm
  • Jorge Quiroz, 1995

Abstract

Many economists advocate the use of tradable water rights as the most efficient system for allocating scarce water resources among alternative economic uses. According to this view, a private market in tradable water rights would maximize the economic value of the resource; would help to reduce costly public infrastructure investment and would foster private investment in irrigation. The case of Chile, which in 1981 established a system of tradable water rights, is fairly unique and provides important lessons for other LCDs. The paper reviews the major issues and controversies that have surrounded the practical implementation of this system in Chile. The paper contends that the system in Chile has worked reasonably well although some amendments may be needed. Among other things, a more precise definition of non-consumptive rights is called for and transaction costs arising from incomplete legalization of water titles, lack of infrastructure, and free rider problems need to be reduced. However, all in all, fine tuning of the system, rather than drastic reform, seems the most advisable policy recommendation. In this sense, the conclusions of the paper differ from some policy prescriptions recently proposed by the government. Finally, the papers emphasizes some particular characteristics of the Chilean experience that have contributed to an adequate functioning of the system and that should be taken into account when implementing similar schemes in other

Suggested Citation

  • Monica Brehm & Jorge Quiroz, 1995, "undated". "The Market for Water Rights in Chile: Major Issues," Reports _022, World Bank Latin America and the Caribean Region Department.
  • Handle: RePEc:wop:bawlad:_022
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wop:bawlad:_022. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel). General contact details of provider: http://edirc.repec.org/data/wrldbus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.