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The effects of water policies on the farm sector in the Western Cape

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  • van Zyl, Johan
  • Vink, Nick

Abstract

The farm sector of the Western Cape is modelled using a sector mathematical programming model to determine the effect of different water policies on output, prices, welfare and employment. Two scenarios are analysed, namely the effect of a restriction of water available for irrigation, and an increase in water tariffs. Results show a relative shift away from (intensive) irrigated production, and a decrease in producer welfare, especially for irrigation farmers, under both scenarios. When water availability is decreased, the negative effect falls disproportionately on the poor as employment decreases. In the long run the negative effects are severe, as there is a relative shift out of industries where the Western Cape has a competitive advantage.

Suggested Citation

  • van Zyl, Johan & Vink, Nick, 1997. "The effects of water policies on the farm sector in the Western Cape," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 36(4), pages 1-13, December.
    • Handle: RePEc:ags:agreko:54717
    DOI: 10.22004/ag.econ.54717
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    References listed on IDEAS

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    2. P. B. R. Hazell, 1971. "A Linear Alternative to Quadratic and Semivariance Programming for Farm Planning under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(1), pages 53-62.
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    6. Douglas L. Young, 1979. "Risk Preferences of Agricultural Producers: Their Use in Extension and Research," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(5), pages 1063-1070.
    7. P. B. R. Hazell & P. L. Scandizzo, 1974. "Competitive Demand Structures under Risk in Agricultural Linear Programming Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(2), pages 235-244.
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    Cited by:

    1. Vink, N. & Kirsten, J.F., 1999. "A Descriptive Analysis Of Employment Trends In South African Agriculture," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 38(2).
    2. Johan van Zyl & Nick Vink & Johann Kirsten & Daneswan Poonyth, 2001. "South African agriculture in transition: the 1990s," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(6), pages 725-739.

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