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

Author

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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
    DOI: 10.22004/ag.econ.97035
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    File URL: https://ageconsearch.umn.edu/record/97035/files/DP143.pdf
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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:

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    2. Athanasios Tsiarapas & Zisis Mallios, 2023. "Estimating the long-term impact of market power on the welfare gains from groundwater markets," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 25(3), pages 377-406, July.

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