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Estimating the impacts of water pricing on smallholder irrigators in North West Province, South Africa

Author

Listed:
  • Stijn Speelman

    (Department Land Management - KU Leuven - Catholic University of Leuven = Katholieke Universiteit Leuven)

  • Jeroen Buysse

    (UGENT - Universiteit Gent = Ghent University)

  • Stefano Farolfi

    (UMR G-EAU - Gestion de l'Eau, Acteurs, Usages - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - AgroParisTech - CEMAGREF - Centre national du machinisme agricole, du génie rural, des eaux et forêts - IRD [France-Sud] - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes, Cirad-ES - Département Environnements et Sociétés - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement)

  • Aymen Frija

    (ENA Moghrane - ENA Moghrane - Ecole Nationale d'Agriculture de Moghrane)

  • Marijke D’haese

    (UGENT - Universiteit Gent = Ghent University)

  • Luc D’haese

Abstract

Worldwide growing water scarcity has increased the call for economic instruments to stimulate rational water use in agriculture. Furthermore, cost-recovery is now widely accepted as a cornerstone of sustainable water management. In many developing countries, where agricultural water use is often still subsidised, water pricing policies are developed for allocating water efficiently and achieving sustainability of water systems. However, the impacts of water pricing policies on irrigation water use and on farm production systems is mostly unknown. We introduce an innovative two-stage methodology that allows estimating these effects at farm level. Applying the method to small-scale irrigators in South Africa, we show that water demand is quite responsive even to small changes in water price. In addition, the introduction of a water price significantly decreases farm profit. This appears to be a problem primarily for the poorer farmers.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Stijn Speelman & Jeroen Buysse & Stefano Farolfi & Aymen Frija & Marijke D’haese & Luc D’haese, 2009. "Estimating the impacts of water pricing on smallholder irrigators in North West Province, South Africa," Post-Print hal-04058950, HAL.
    • Handle: RePEc:hal:journl:hal-04058950
    DOI: 10.1016/j.agwat.2009.06.014
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    Cited by:

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    4. Israel Finkelshtain & Iddo Kan & Mickey Rapaport‐Rom, 2020. "Substitutability of Freshwater and Non‐Freshwater Sources in Irrigation: an Econometric Analysis," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(4), pages 1105-1134, August.
    5. Dupeux, Bérénice & Buysse, Jeroen, 2014. "Parametric versus non-parametric simulation," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182768, European Association of Agricultural Economists.
    6. Prakashan Veettil & Stijn Speelman & Guido Huylenbroeck, 2013. "Estimating the Impact of Water Pricing on Water Use Efficiency in Semi-arid Cropping System: An Application of Probabilistically Constrained Nonparametric Efficiency Analysis," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(1), pages 55-73, January.
    7. Kiprop, Jonah Kipsaat, 2015. "An Evaluation Of Farmers Willingness To Pay For Irrigation Water In Kerio Valley Basin Kenya," Research Theses 265580, Collaborative Masters Program in Agricultural and Applied Economics.
    8. Guifang Li & Dongdong Ma & Cuiping Zhao & Hang Li, 2023. "The Effect of the Comprehensive Reform of Agricultural Water Prices on Farmers’ Planting Structure in the Oasis–Desert Transition Zone—A Case Study of the Heihe River Basin," IJERPH, MDPI, vol. 20(6), pages 1-17, March.
    9. Njiraini, Georgina W. & Thiam, Djiby Racine & Muchapondwa, Edwin, 2016. "Implications of water policy reforms on water use efficiency and quality in South Africa: The Olifants river basin," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246440, African Association of Agricultural Economists (AAAE).
    10. Qing Zhou & Yali Zhang & Feng Wu, 2022. "Can Water Price Improve Water Productivity? A Water-Economic-Model-Based Study in Heihe River Basin, China," Sustainability, MDPI, vol. 14(10), pages 1-18, May.
    11. Kiprop, Jonah Kipsaat, 2015. "An Evaluation Of Farmers Willingness To Pay For Irrigation Water In Kerio Valley Basin Kenya," Research Theses 276443, Collaborative Masters Program in Agricultural and Applied Economics.
    12. Khalil, Hamidreza Mirzaei & Esfandiari, Mahdi & Shahraki, Javad & Yaghoubi, Morteza, 2016. "Assessment of Water Use Efficiency Indices in Selected Plains of Fars Province, Iran," International Journal of Agricultural Management and Development (IJAMAD), Iranian Association of Agricultural Economics, vol. 6(2), June.
    13. Alban Lika & Francesco Galioto & Davide Viaggi, 2017. "Water Authorities’ Pricing Strategies to Recover Supply Costs in the Absence of Water Metering for Irrigated Agriculture," Sustainability, MDPI, vol. 9(12), pages 1-16, November.
    14. Zhou, Haibo & Yang, Yi & Chen, Yao & Zhu, Joe, 2018. "Data envelopment analysis application in sustainability: The origins, development and future directions," European Journal of Operational Research, Elsevier, vol. 264(1), pages 1-16.
    15. Zhang, Cheng-Yao & Oki, Taikan, 2023. "Water pricing reform for sustainable water resources management in China’s agricultural sector," Agricultural Water Management, Elsevier, vol. 275(C).
    16. Aldaya, Maite M. & Gutiérrez-Martín, Carlos & Espinosa-Tasón, Jaime & Ederra, Idoia & Sánchez, Mercedes, 2023. "The impact of the territorial gradient and the irrigation water price on agricultural production along the first phase of the Navarra Canal in Spain," Agricultural Water Management, Elsevier, vol. 281(C).
    17. Abdulai Adams & Bedru Balana & Nicole Lefore, 2020. "Efficiency of Small-scale Irrigation Farmers in Northern Ghana: A Data Envelopment Analysis Approach," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 14(3), pages 332-352, August.

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