Water marketing in the Crocodile River, South Africa
AbstractTransfers of water in the Crocodile River above and below the gorge (near Nelspruit and Malelane) were studied based on a survey in the area during November 2003, followed up by telephonic interviewing during March 2004. Almost all the water trades (permanent and rentals) observed in this study were from farmers above the gorge to farmers below the gorge. In order to study whether the water market promotes efficiency the data were subjected to several statistical analyses (Principal Components, Ridge Regression, Logit). It is concluded that in the transfer of water some attributes in the purchasing area such as lower production risk (sugar cane) and lower financial risk and better cash flow (bananas and sugar cane) were more important than the income per cubic meter of water. Water supply in this area is highly irregular while farmers were found to be extremely risk averse especially as far as down-side risk is concerned. The average water price in this area in recent years (2002 to 2003) was between R2,000 and R3,000 per ha (1ha = 8,000 cubic meter). Buyers are large progressive farmers that purchase (and rent) from many sellers (or lessees). It is concluded that information (sale prices and rents) is asymmetrical. Few permanent transfers have taken place in the Crocodile River in recent years. It is concluded that there are reasons why transfers at present are not processed and role players should discuss these reasons and possible solutions before further action is taken.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Agricultural Economics Association of South Africa (AEASA) in its journal Agrekon.
Volume (Year): 44 (2005)
Issue (Month): 3 (September)
Resource /Energy Economics and Policy;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Huffaker, Ray G. & Whittlesey, Norman K., 1995. "Agricultural Water Conservation Legislation: Will It Save Water?," Choices, Agricultural and Applied Economics Association, vol. 10(4).
- R. Quentin Grafton & Clay Landry & Gary D. Libecap & Sam McGlennon & Robert O'Brien, 2010.
"An Integrated Assessment of Water Markets: Australia, Chile, China, South Africa and the USA,"
NBER Working Papers
16203, National Bureau of Economic Research, Inc.
- Quentin Grafton & Clay Landry & Gary Libecap & Sam McGlennon & Bob O'Brien, 2010. "An Integrated Assessment of Water Markets: Australia, Chile, China, South Africa and the USA," Centre for Water Economics, Environment and Policy Papers 1009, Centre for Water Economics, Environment and Policy, Crawford School of Public Policy, The Australian National University.
- R. Quentin Grafton & Clay Landry & Gary D. Libecap & Sam McGlennon & Bob O’Brien, 2010. "An Integrated Assessment of Water Markets: Australia, Chile, China, South Africa and the USA," ICER Working Papers 32-2010, ICER - International Centre for Economic Research.
- Grove, Bennie & Oosthuizen, Lukas Klopper, 2010. "Stochastic efficiency analysis of deficit irrigation with standard risk aversion," Agricultural Water Management, Elsevier, vol. 97(6), pages 792-800, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.