Water management problems in the Copiapó Basin, Chile: markets, severe scarcity and the regulator

Abstract

This research focuses on the determination of the factors that led to the failure of water management in the Copiapó Basin in Chile. Interestingly, the existence of full private ownership and free tradability of water rights has not prevented the overexploitation of groundwater resources. In the paper, firstly, water regulation and the role of the regulator in Chile are briefly discussed. Secondly, the evolution of water resources in the Copiapó region is characterized and analyzed, and the granting of water use rights in the basin in the last 30 years is concisely described. Thirdly, we examine and analyze prices and quantities traded in the water market of the Copiapó region. We will argue that this crisis is a consequence first of failure in regulatory implementation and second of an extremely rigid regulatory framework that leaves limited room for adjustment to changing conditions, especially regarding the emergence of new information concerning water availability. We believe this investigation is not only relevant for this case in particular, but also for other regions and countries where water markets are in place.

Are water markets globally applicable?

“…While it promotes the efficient use of water resources through a water market, it may cause other inefficiencies by creating dormant water rights. For example, the Chilean government did not prohibit non-use (Bitran et al 2014). This enabled parties to acquire more water rights than they actually used.…”

“…Note that a water market is not a panacea. For example, the original Chilean model of a water market introduced with the 1981 water code was regarded as a leading example of a free-market approach to water allocation (Bitran et al 2014). It promoted the reallocation of water resources to high-value uses in some watersheds, but it failed to consider groundwater and environmental flow (Bauer 2013).…”

State, market or community failure? Untangling the determinants of groundwater depletion in Copiapó (Chile)

“…Is the state capable of determining the amounts of water that are actually being drawn off? To answer these questions, we reviewed 12 studies on the Copiapó aquifer (Alamos & Peralta, 1987;Bitran et al, 2014;Dictuc, 2010;Donoso et al, 2014b;Golder Associates, 2006;Hammer & Asociados, 1980), Hidromás CEF limitada, 2013;Minera Luminar Copper Chile, 2008;Partarrieu et al, 2009;Troncoso R et al, 2012) which were conducted in the last 25 years. We also used primary data, such as the WR registry and market trading data (the data can be requested from CASUB).…”

“…In certain cases, this has led groundwater dependent economies to the verge of collapse (Petit et al, 2017). Examples of such trajectories have been reported from settings as diverse as Australia (Nevill, 2009), southern European countries (De Stefano, Fornés, López-Geta, & Villarroya, 2015), West American states (Scanlon et al, 2012), Central and South America (Bitran, Rivera, & Villena, 2014;Scott & Shah 2004), the Indian subcontinent (Wato & Mugera, 2016), the Middle East (Al-Sakkaf et al, 1999) and North Africa (Kuper et al, 2016). tradable) or other negotiated rules defined by the users themselves (decentralized management).…”

La máquina de crecimiento en una ciudad minera y el papel del espacio público: el proyecto Parque Kaukari, Copiapó

“…Fuente: Elaboración propia con base en Gobierno de Chile, 2011. Un ejemplo de un espacio público emblemático corresponde al Parque Kaukari, siendo esto un proyecto de gran envergadura y de característica abierta y evidentemente pública. La ciudad enfrenta dos presiones destacadas con relación a este proyecto: Por un lado, sufre de una marcada crisis hídrica, donde hace varios años la cuenca del río Copiapó se encuentra con un déficit permanente (Bitran, Rivera & Villena, 2014), manifiesto en un lecho del río totalmente seco por varios años (figura 6). Por otro lado, la ciudad de Copiapó presenta un déficit de superficie de áreas verdes, con tan solo 35 ha de áreas verdes (parques y plazas), muy por debajo de las 125 ha o de las 85,7 ha que debería tener Copiapó aplicando las recomendaciones de la OMS o el estándar nacional (Programa de Naciones Unidas para el Medio Ambiente, PNUMA, 2007).…”