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The impact of the water rights system on smallholder irrigators' willingness to pay for water in Limpopo province, South Africa

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  • SPEELMAN, STIJN
  • FAROLFI, STEFANO
  • FRIJA, AYMEN
  • D'HAESE, MARIJKE
  • D'HAESE, LUC

Abstract

Water rights are currently receiving increased attention from scholars and policymakers due to the growing understanding that ill-defined water rights impair efficient use. In South Africa, smallholder irrigation faces problems of low water use efficiency and cost recovery of government investments. This study uses contingent ranking to analyse the willingness to pay (WTP) of smallholder irrigators for changes in the water rights system. The results indicate that smallholders are prepared to pay considerably higher water prices if these are connected to improvements in the water rights system. By segmenting the population it was also shown that the importance attached to water rights dimensions varies in each segment. While lower institutional trust and lower income levels lead to a lower WTP for transferability, experiencing water shortage increases this WTP. Such information is valuable in guiding policy makers in the future design of water rights.

Suggested Citation

  • Speelman, Stijn & Farolfi, Stefano & Frija, Aymen & D'Haese, Marijke & D'Haese, Luc, 2010. "The impact of the water rights system on smallholder irrigators' willingness to pay for water in Limpopo province, South Africa," Environment and Development Economics, Cambridge University Press, vol. 15(04), pages 465-483, August.
    • Handle: RePEc:cup:endeec:v:15:y:2010:i:04:p:465-483_00
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    Cited by:

    1. Rui Fragoso & Carlos Marques, 2013. "The Economic Impact of Alternative Water Pricing Policies in Alentejo Region," CEFAGE-UE Working Papers 2013_02, University of Evora, CEFAGE-UE (Portugal).
    2. Speelman, Stijn & Veettil, Prakashan Chellattan, 2013. "Heterogeneous preferences for water rights reforms among smallholder irrigators in South Africa," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), issue 2, August.
    3. Veettil, Prakashan Chellattan & Speelman, Stijn & Frija, Aymen & Buysse, Jeroen & van Huylenbroeck, Guido, 2011. "Complementarity between water pricing, water rights and local water governance: A Bayesian analysis of choice behaviour of farmers in the Krishna river basin, India," Ecological Economics, Elsevier, vol. 70(10), pages 1756-1766, August.
    4. Shahzad Kouser & Matin Qaim, 2012. "Valuing financial, health, and environmental benefits of Bt cotton in Pakistan," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 105, Courant Research Centre PEG.

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