Anthony Letsoalo James Blignaut Theuns de Wet Martin de Wit Sebastiaan Hess Richard S.J. Tol () (Economic and Social Research Institute, Dublin) Jan van Heerden
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The 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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Publisher Info
Paper 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 Handle: RePEc:sgc:wpaper:62
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