Essays on economics of copper and water in a climate change context
Professor Advisor
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López, Ramón
Professor Advisor
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Figueroa B., Eugenio
Author
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Sturla Zerene, Gino
Admission date
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2021-05-02T16:10:36Z
Available date
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2021-05-02T16:10:36Z
Publication date
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2020-09
Identifier
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https://repositorio.uchile.cl/handle/2250/179374
General note
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Tesis para optar al grado de Doctor en Economía
es_ES
Abstract
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This article estimates the economic rents received by the 10 mines that comprise
Chile’s large-scale private-sector copper-mining industry. The methodology used
produces a conservative calculation and includes two corrections that have hitherto
been ignored in the literature: the reimbursement of exploration expenses and the
compensation needed for volatility in the copper price. Estimates show that the
wealth transferred to these firms between 2005 and 2014 was at least US$ 114
billion. These rents are neutral in terms of investment and production decisions; in
other words, if the private mining companies had paid the Chilean Treasury the
calculated amount, their total investment and output would have been unchanged,
but the country at large could have benefited from the huge voluminous resources
in question. Moreover, in the absence of any other distortion, the firms would still
have earned returns equivalent to what they would have obtained under perfect
competition.