NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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An Illiquid Market in the Desert: Estimating the Cost of Water Trade Restrictions in Northern Chile

Eric C. Edwards, Oscar Cristi, Gonzalo Edwards, Gary D. Libecap

NBER Working Paper No. 21869
Issued in January 2016, Revised in February 2018

---- Acknowledgments ----

Previously circulated as "An Illiquid Market in the Desert: The Role of Interest Groups in Shaping Environmental Regulation." This work was supported by a grant from the University of California Center for Energy and Environmental Economics (UCE3) and by the Utah Agricultural Experiment Station. A portion of this work was undertaken while Eric Edwards was Lone Mountain Fellow at the Property and Environment Research Center (PERC). The authors would like to thank Terry Anderson, Carlos Díaz, Nick Parker, Terry Jordan, Naomi Kirk-Lawlor, Sara Sutherland, Matt Turner, and Mark Kanazawa for their suggestions as well as seminar participants at PERC, the University of Utah, Washington State University, the University of Colorado Environmental and Resource Economics Workshop, WEAI Annual Conference, and the UCE3 Research Conference. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

---- Disclosure of Financial Relationships for Gonzalo Edwards ----

Oscar Cristi and Gonzalo Edwards did consulting work during 2010/11 for Aguas Antofagasta S. A., using part of the data base used in this paper, to analyze raw water prices in the region.

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