Oral Auctions of Water User Rights in Chile: What Happened Post Reform of the Water Code in 2005?

  • Julio Peña-Torres, Pontificia Universidad Católica de Chile, Chile
  • Emiliano Vargas, Ministerio de Obras Públicas, Chile
  • Guillermo Donoso, Pontificia Universidad Católica de Chile, Chile

Resumen


We carry out the first analysis on the use of oral price- ascending auctions to allocate water user rights in Chile. With data from 2005 to 2018, the effects of the 2005-reform of the Water Code on the use of auctions are analyzed. Following the reform, a minimum proportion of the new rights granted were allocated via auction. In fact, 57% of the called auctions were declared void. On the other hand, in the auctions that did take place, often a few participants attended. Moreover, in those auctions with few participants, awards at the minimum bid prices stood out. Hypotheses and evidence on these facts are analyzed. As long as the objective of invigorating the use of auctions to award new water rights remains valid, we pinpoint challenges to be resolved.

Como citar Peña-Torres, Julio, Emiliano Vargas & Guillermo Donoso. 2019. “Oral Auctions of Water User Rights in Chile: What Happened Post Reform of the Water Code in 2005?”. Estudios Públicos 155.

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