An Economic Evaluation of the Health and Agricultural Damages Caused by Copper Mining in Chile

Abstract

Abstract This study assesses the environmental damage caused by copper mining on surface water bodies in Chile. The few official records on the discharges and concentrations of arsenic and copper only allow for identifying the impacts of some mining operations in the regions of Coquimbo, Valparaíso, and O’Higgins. The economic valuation is carried out through the impact pathway approach, which relates copper production, discharges, concentrations, and dose-response coefficients to establish effects on health and agriculture. The results show that the economic damage due to water pollution occurs mainly in the regions of Coquimbo and O’Higgins. The above is explained because the greatest externalities are generated in agricultural areas, while the damage to health is low because of the small population exposed (97.6% versus 2.4%). Finally, total damages represent 0.43%, 0.26%, and 0.0001% of copper sales in the mining operations analyzed in the regions of Coquimbo, O’Higgins, and Valparaíso, respectively.