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Improving water use efficiency under worsening scarcity: Evidence from the Middle Olifants sub-basin in South Africa

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  • Walter, Teresa
  • Kloos, Julia
  • Tsegai, Daniel W.

Abstract

With the political changes in South Africa in the early 1990s, the South African government introduced a reform process in the entire water sector with the goal of a more enhanced and equitable water management system. This paper analyzes existing water allocation situations and applies a nonlinear optimization model to investigate the optimal intra- and inter-regional allocations in the Middle Olifants sub-basin of South Africa. Results show higher benefit from inter-regional water allocation. Reducing water supply levels to conform to the sustainable water supply policy, it can be shown that although water supply is reduced by approximately 50%, total benefits from water are only reduced by 5% and 11% for inter- and intra-regional allocation regimes respectively. These results indicate that alternative water allocation mechanisms can serve as instruments to offset for the effects of water scarcity.

Suggested Citation

  • Walter, Teresa & Kloos, Julia & Tsegai, Daniel W., 2010. "Improving water use efficiency under worsening scarcity: Evidence from the Middle Olifants sub-basin in South Africa," Discussion Papers 97035, University of Bonn, Center for Development Research (ZEF).
  • Handle: RePEc:ags:ubzefd:97035
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    File URL: http://purl.umn.edu/97035
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    References listed on IDEAS

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    1. Ringler, Claudia, 2001. "Optimal Water Allocation In The Mekong River Basin," Discussion Papers 18745, University of Bonn, Center for Development Research (ZEF).
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    Cited by:

    1. Nijiraini, Georgina & Thiam, Djiby, 2015. "Estimating transaction costs associated with water policy implementation in South Africa," 2015 Conference, August 9-14, 2015, Milan, Italy 212585, International Association of Agricultural Economists.

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    Keywords

    Water allocation; IWRM; Olifants basin; South Africa; Africa; Resource /Energy Economics and Policy;

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