Macro-micro feedback links of water management in South Africa: CGE analyses of selected policy regimes
The pressure on an already stressed water situation in South Africa is predicted to increase significantly under climate change, plans for large industrial expansion, ongoing rapid urbanization, and government programs to provide access to water to millions of previously excluded populations. This a...
| Main Authors: | , |
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| Format: | Journal Article |
| Language: | Inglés |
| Published: |
Wiley
2011
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/154647 |
| _version_ | 1855523998225399808 |
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| author | Hassan, Rashid Thurlow, James |
| author_browse | Hassan, Rashid Thurlow, James |
| author_facet | Hassan, Rashid Thurlow, James |
| author_sort | Hassan, Rashid |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | The pressure on an already stressed water situation in South Africa is predicted to increase significantly under climate change, plans for large industrial expansion, ongoing rapid urbanization, and government programs to provide access to water to millions of previously excluded populations. This article employs a general equilibrium approach to examine the economy-wide impacts of selected macro and water-related policy reforms on water use and allocation, rural livelihoods, and economy at large. The analyses reveal that implicit crop-level water quotas reduce the amount of irrigated land allocated to higher-value horticultural crops and create higher shadow rents for production of lower-value water-intensive field crops, such as sugarcane and fodder. Accordingly, liberalizing local water allocation within irrigation agriculture is found to work in favor of higher-value crops, and expand agricultural production and exports and farm employment. Allowing for water trade between irrigation and nonagricultural uses fuelled by higher competition for water from urbanization leads to greater water shadow prices for irrigation water with reduced income and employment benefits to rural households and higher gains for nonagricultural households. The analyses show difficult trade-offs between general economic gains and higher water prices, which place serious questions on subsidizing water supply to irrigated agriculture, i.e., making irrigation subsidies much harder to justify. |
| format | Journal Article |
| id | CGSpace154647 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2011 |
| publishDateRange | 2011 |
| publishDateSort | 2011 |
| publisher | Wiley |
| publisherStr | Wiley |
| record_format | dspace |
| spelling | CGSpace1546472024-11-15T08:52:28Z Macro-micro feedback links of water management in South Africa: CGE analyses of selected policy regimes Hassan, Rashid Thurlow, James water resources irrigation models mathematical models computable general equilibrium models The pressure on an already stressed water situation in South Africa is predicted to increase significantly under climate change, plans for large industrial expansion, ongoing rapid urbanization, and government programs to provide access to water to millions of previously excluded populations. This article employs a general equilibrium approach to examine the economy-wide impacts of selected macro and water-related policy reforms on water use and allocation, rural livelihoods, and economy at large. The analyses reveal that implicit crop-level water quotas reduce the amount of irrigated land allocated to higher-value horticultural crops and create higher shadow rents for production of lower-value water-intensive field crops, such as sugarcane and fodder. Accordingly, liberalizing local water allocation within irrigation agriculture is found to work in favor of higher-value crops, and expand agricultural production and exports and farm employment. Allowing for water trade between irrigation and nonagricultural uses fuelled by higher competition for water from urbanization leads to greater water shadow prices for irrigation water with reduced income and employment benefits to rural households and higher gains for nonagricultural households. The analyses show difficult trade-offs between general economic gains and higher water prices, which place serious questions on subsidizing water supply to irrigated agriculture, i.e., making irrigation subsidies much harder to justify. 2011-03 2024-10-01T14:02:52Z 2024-10-01T14:02:52Z Journal Article https://hdl.handle.net/10568/154647 en Limited Access Wiley Hassan, Rashid; Thurlow, James. 2011. Macro-micro feedback links of water management in South Africa: CGE analyses of selected policy regimes. Agricultural Economics 42(2) : 235-247. https://doi.org/10.1111/j.1574-0862.2010.00511.x |
| spellingShingle | water resources irrigation models mathematical models computable general equilibrium models Hassan, Rashid Thurlow, James Macro-micro feedback links of water management in South Africa: CGE analyses of selected policy regimes |
| title | Macro-micro feedback links of water management in South Africa: CGE analyses of selected policy regimes |
| title_full | Macro-micro feedback links of water management in South Africa: CGE analyses of selected policy regimes |
| title_fullStr | Macro-micro feedback links of water management in South Africa: CGE analyses of selected policy regimes |
| title_full_unstemmed | Macro-micro feedback links of water management in South Africa: CGE analyses of selected policy regimes |
| title_short | Macro-micro feedback links of water management in South Africa: CGE analyses of selected policy regimes |
| title_sort | macro micro feedback links of water management in south africa cge analyses of selected policy regimes |
| topic | water resources irrigation models mathematical models computable general equilibrium models |
| url | https://hdl.handle.net/10568/154647 |
| work_keys_str_mv | AT hassanrashid macromicrofeedbacklinksofwatermanagementinsouthafricacgeanalysesofselectedpolicyregimes AT thurlowjames macromicrofeedbacklinksofwatermanagementinsouthafricacgeanalysesofselectedpolicyregimes |