Triple Dividends Of Water Consumption Charges In South Africa
AbstractThe South African government is exploring ways to address water scarcity problems by introducing a water resource management charge on the quantity of water used in sectors such as irrigated agriculture, mining and forestry. It is expected that a more efficient water allocation, lower use and a positive impact on poverty can be achieved. This paper reports on the validity of these claims by applying a computable general equilibrium model to analyse the triple dividend of water consumption charges in South Africa: reduced water use, more rapid economic growth, and a more equal income distribution. It is shown that the appropriate, budget-neutral combination of water charges, particularly on irrigated agriculture and coal mining, and reduced indirect taxes, particularly on food, would yield triple dividends.
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Bibliographic InfoPaper provided by Research unit Sustainability and Global Change, Hamburg University in its series Working Papers with number FNU-62.
Length: 32 pages
Date of creation: Apr 2005
Date of revision: Apr 2005
Publication status: Published, Water Resources Research, 43, W05412
water scarcity; water charges; triple dividend; poverty alleviation; computable general equilibrium model;
Find related papers by JEL classification:
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
This paper has been announced in the following NEP Reports:
- NEP-AFR-2007-03-24 (Africa)
- NEP-AGR-2007-03-24 (Agricultural Economics)
- NEP-ALL-2007-03-24 (All new papers)
- NEP-CMP-2007-03-24 (Computational Economics)
- NEP-DEV-2007-03-24 (Development)
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