IDEAS home Printed from https://ideas.repec.org/p/ags/iaae06/25486.html
   My bibliography  Save this paper

Inter-sectoral Water Use in South Africa: Efficiency Versus Equity

Author

Listed:
  • Juana, James S.
  • Kirsten, Johann F.
  • Strzepek, Kenneth M.

Abstract

While water supply sources are dwindling in South Africa, the demand for the scarce water resource is increasing. This situation requires a switch from supply to demand management of water in the country. The study updates the 1999 social accounting matrix for South Africa, using the Trade and Industrial Policy Strategies (TIPS) time series data, STATSA's 2001 census report and 2000 water accounts, the 2002 national income accounts, published by the South African Reserve Bank (SARB) and the Water Resource Management Strategy (WRMS) registration data. Using the updated SAM, the contribution of water to economic development in South Africa is estimated through the traditional SAM multiplier analysis. The paper then investigates the impact of reallocating water among the production sectors, on the basis of economic efficiency, on output growth, factor remuneration and households' income generation. The computational and simulation results show that, though agriculture is among the sectors that have the least marginal value of water, water reallocation based on marginal values will reduce the incomes of the poorest households, and put at stake the livelihoods of the most vulnerable population. Scenario analyses suggest that this effect will be minimal if marginal productivity consideration for inter-sectoral water reallocation is reduced to 30%, while intra-sectoral water reallocation on the basis of efficiency is currently viewed as the most viable option.

Suggested Citation

  • Juana, James S. & Kirsten, Johann F. & Strzepek, Kenneth M., 2006. "Inter-sectoral Water Use in South Africa: Efficiency Versus Equity," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25486, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25486
    DOI: 10.22004/ag.econ.25486
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/25486/files/cp060412.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.25486?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Tanjuakio, Rodolfo V. & Hastings, Steven E. & Tytus, Peter J., 1996. "The Economic Contribution of Agriculture in Delaware," Agricultural and Resource Economics Review, Cambridge University Press, vol. 25(1), pages 46-53, April.
    2. Bautista, Romeo M. & Thomas, Marcelle & Muir-Leresche, Kay & Lofgren, Hans, 2002. "Macroeconomic policy reforms and agriculture: towards equitable growth in Zimbabwe," Research reports 128, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Juana, James S. & Mabugu, Ramos E., 2005. "Assessment of smallholder's agriculture's contribution to the economy of Zimbabwe: A social accounting matrix multiplier analysis," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(3), pages 1-19, September.
    2. Juana, James S., 2006. "A quantitative analysis of Zimbabwe's land reform policy: An application of Zimbabwe SAM multipliers," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 45(3), pages 1-25, September.
    3. Lin, Tun & De Guzman, Franklin, 2007. "Tourism for pro-poor and sustainable growth: economic analysis of tourism projects," MPRA Paper 24994, University Library of Munich, Germany.
    4. Barbara Hutniczak, 2022. "Efficient updating of regional supply and use tables with the national-level statistics," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 11(1), pages 1-11, December.
    5. Seung, Chang K., 2017. "A Multi-regional Economic Impact Analysis of Alaska Salmon Fishery Failures," Ecological Economics, Elsevier, vol. 138(C), pages 22-30.
    6. AlShehabi, Omar Hesham, 2013. "Modelling energy and labour linkages: A CGE approach with an application to Iran," Economic Modelling, Elsevier, vol. 35(C), pages 88-98.
    7. Masakure, Oliver & Henson, Spencer, 2005. "Why do small-scale producers choose to produce under contract? Lessons from nontraditional vegetable exports from Zimbabwe," World Development, Elsevier, vol. 33(10), pages 1721-1733, October.
    8. Vega, Amaya & Corina Miller, Ana & O’Donoghue, Cathal, 2014. "Economic impacts of seafood production growth targets in Ireland," Marine Policy, Elsevier, vol. 47(C), pages 39-45.
    9. Hristov, Jordan, 2015. "An exploratory analysis of the impact of climate change on Macedonian agriculture," 2015 Conference, August 9-14, 2015, Milan, Italy 211747, International Association of Agricultural Economists.
    10. Mahofa, Godfrey, 2007. "Economic Analysis of Factors Affecting Cotton Production In Zimbabwe," Research Theses 134490, Collaborative Masters Program in Agricultural and Applied Economics.
    11. Sharawi, Huda Abdelwahab, 2006. "Optimal land-use allocation in central Sudan," Forest Policy and Economics, Elsevier, vol. 8(1), pages 10-21, January.
    12. Julius MUKARATI & Godswill MAKOMBE, 2017. "Modeling the Distributive Effects of an Agricultural Shock on Household Income in South Africa: A Sam Multiplier Decomposition and Structurel Path Analysis," Journal of Economics Bibliography, KSP Journals, vol. 4(1), pages 43-55, March.
    13. Chang K. Seung, 2014. "Estimating effects of exogenous output changes: an application of multi-regional social accounting matrix (MRSAM) method to natural resource management," Regional Science Policy & Practice, Wiley Blackwell, vol. 6(2), pages 177-193, June.
    14. Amaya Vega & Ana Corina Miller & Cathal O'Donoghue, 2014. "The Seafood Sector in Ireland. An Assessment of the Employment Effects of Seafood Production Growth Targets," The Institute for International Integration Studies Discussion Paper Series iiisdp447, IIIS.
    15. Nicholas Kilimani, 2014. "Water Taxation and the Double Dividend Hypothesis," Working Papers 201451, University of Pretoria, Department of Economics.
    16. Chang Seung & Edward Waters, 2013. "Calculating impacts of exogenous output changes: application of a social accounting matrix (SAM) model to Alaska fisheries," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(2), pages 553-573, October.
    17. Vega, Amaya & Miller, Ana Corina & O'Donoghue, Cathal, 2014. "The Seafood Sector in Ireland: Economic Impacts of Seafood Production Growth Targets," Working Papers 163051, National University of Ireland, Galway, Socio-Economic Marine Research Unit.
    18. Jolley, G. Jason & Khalaf, Christelle & Michaud, Gilbert L. & Belleville, Douglas, 2020. "The economic contribution of logging, forestry, pulp & paper mills, and paper products: A 50-state analysis," Forest Policy and Economics, Elsevier, vol. 115(C).

    More about this item

    Keywords

    Resource /Energy Economics and Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae06:25486. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.