Abstracts
This chapter builds on the previous chapter and presents an analysis of water markets in Chile with an emphasis on areas of relatively frequent trades. It provides an estimate of the gains-from-trade and focuses on the exchange of water-use rights. This is important because the exchange of water-use rights requires more elaborate institutional arrangements than does a simple exchange of water. The latter, sometimes referred to as a “spot market” or informal market, occurs when the owner of a legal or prescriptive right to a certain volume or flow of water sells a portion of that water, sometimes outside of legal sanction, to a neighbor in a simple transaction. These exchanges are for a finite period of time — sometimes for only a few hours of irrigation. Although the unit of sales may not be metered volumetrically, both buyer and seller usually have good information on the volume involved. A more permanent transaction involves the exchange of the water-use right itself. This generally requires legal sanctions to maintain the security of the right after the transfer. These transfers are generally permanent, but can be for a finite, but extended period of time — at least one irrigation season. The burden of uncertain supply falls on the purchaser of the right.
This chapter draws heavily on Hearne and Easter, 1997.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Chang, C., and R.C. Griffin, 1992. “Water Marketing as a Reallocative Institution in Texas.” Water Resources Research, 28(March):879–890.
CIAPEP (Curso Interamericano en Preparación Y Evaluación de Proyectos), 1991. Embalse Puclaro. Instituto de Economía. Pontificia Universidad Católica de Chile, Santiago.
Colby, B.G., 1990. “Transactions Costs and Efficiency in Western Water Allocation.” American Journal of Agricultural Economics, 72(5): 1184–1192.
Dinar, A., and J. Letey, 1991. “Agricultural Water Marketing, Allocative Efficiency, and Drainage Reduction.” Journal of Environmental Economics and Management, 20:210–223.
Hamilton, J.R., N. Whittlesey, and P. Halverson, 1989. “Interruptible Water Markets in the Pacific Northwest.” American Journal of Agricultural Economics, 71:63–75.
Hearne, R.R., 1995. “The Market Allocation of Natural Resources: Transactions of Water-Use Rights in Chile.” Ph.D. Dissertation. University of Minnesota.
Hearne, R.R., and K. William Easter, 1997. “The Economic and Financial Gains from Water Markets in Chile,” Agricultural Economics, 15:187–199.
Maass, A., and R.L. Anderson, 1978. …and the Desert Shall Rejoice: Conflict, Growth and Justice in Arid Environments. MIT Press. Cambridge, MA.
Moncur, J.E.T. and R.L. Pollack, 1988. “Scarcity Rents for Water: A Valuation and Pricing Model.” Land Economics, 64:62–72.
Rosen, M., and R. Sexton, 1993. “Irrigation Districts and Water Markets: An Application of Cooperative Decision-Making Theory.” Land Economics, 69:39–53.
Vaux, H.J., and R.E Howitt, 1984. “Managing Water Scarcity: An Evaluation of Interregional Transfers.” Water Resources Research, 20:785–792.
Weinberg, M., C. Kling, and J. Wilen, 1993. “Water Markets and Water Quality.” American Journal of Agricultural Economics, 75(2):278–91.
Whirtlesey, N. and J. Houston, 1984. “Water Markets for Stream Flow Augmentation.” in A Critical Assessment of Forecasting in Western Water Management, J. Cassidy and D. Lettenmair (eds.), American Water Resources Association, p. 139–146.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1998 Kluwer Academic Publishers
About this chapter
Cite this chapter
Hearne, R.R., Easter, K.W. (1998). Economic and Financial Returns from Chile’s Water Markets. In: Easter, K.W., Rosegrant, M.W., Dinar, A. (eds) Markets for Water. Natural Resource Management and Policy, vol 15. Springer, Boston, MA. https://doi.org/10.1007/978-0-585-32088-5_10
Download citation
DOI: https://doi.org/10.1007/978-0-585-32088-5_10
Publisher Name: Springer, Boston, MA
Print ISBN: 978-0-7923-8256-0
Online ISBN: 978-0-585-32088-5
eBook Packages: Springer Book Archive