IDEAS home Printed from https://ideas.repec.org/a/ags/agreko/245957.html
   My bibliography  Save this article

Discriminant Analysis Of Water Trade Among Irrigation Farmers In The Lower Orange River Of South Africa

Author

Listed:
  • Armitage, R.M
  • Nieuwoudt, W.L.

Abstract

This study found that a water market emerged within the Lower Orange River for river water rights. The market emergence is attributed to the scarcity of water in this region and the demonstrated demand by farmers for a change in the allocation of these rights. Transfers were facilitated by authorisation of the Department of Water Affairs and Forestry permitting transfers of water rights, and the enabling environment defined by the regional Water Affairs office. Improving water trade could be achieved by the delegation of authority to the regional Department of Water Affairs to approve transfers, extending support to market transfers of canal water, and ensuring that water extraction is closely monitored as river water use increases in future. A discriminant analysis indicated that water rights transferred from farmers with potential to irrigate wine grapes, raisin grapes, and field crops to farmers with potential to irrigate table grapes, representing the highest valued use of the water. Farmers stated that the proposed new Water Law created much uncertainty about their water rights, stifling water market activity, and that it will lead to underinvestment in irrigated agriculture. Overcoming such institutional and legal barriers for market performance will require that water use allocations be specified for reasonable periods, be inherently secure, and water trading be permitted through the relevant legislatures.

Suggested Citation

  • Armitage, R.M & Nieuwoudt, W.L., 1999. "Discriminant Analysis Of Water Trade Among Irrigation Farmers In The Lower Orange River Of South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 38(1).
    • Handle: RePEc:ags:agreko:245957
    DOI: 10.22004/ag.econ.245957
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/245957/files/02%20Armitage%20_%20Nieuwoudt%20March%201999.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.245957?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. L. Allen Torell & James D. Libbin & Michael D. Miller, 1990. "The Market Value of Water in the Ogallala Aquifer," Land Economics, University of Wisconsin Press, vol. 66(2), pages 163-175.
    2. Easter, K. William, 1996. "MARKET APPROACHES TO WATER ALLOCATION: WHAT HAVE WE LEARNED?; Proceedings of the Fifth Joint Conference on Agriculture, Food, and the Environment, June 17-18, 1996, Padova, Italy," Working Papers 14428, University of Minnesota, Center for International Food and Agricultural Policy.
    3. Thobani, Mateen, 1997. "Formal Water Markets: Why, When, and How to Introduce Tradable Water Rights," The World Bank Research Observer, World Bank, vol. 12(2), pages 161-179, August.
    4. G. F. Ortmann, 1987. "Land Rents and Production Costs in the South African Sugar Industry," South African Journal of Economics, Economic Society of South Africa, vol. 55(3), pages 163-169, September.
    5. Rosegrant, Mark W. & Binswanger, Hans P., 1994. "Markets in tradable water rights: Potential for efficiency gains in developing country water resource allocation," World Development, Elsevier, vol. 22(11), pages 1613-1625, November.
    6. Terry L. Anderson & Donald R. Leal, 1989. "Building coalitions for water marketing," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 8(3), pages 432-445.
    7. Mateen Thobani, 1995. "Tradable Property Rights to Water," Reports _021, World Bank Latin America and the Caribean Region Department.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nieuwoudt, W. Lieb, 2000. "Water market institutions: lessons from Colorado," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 39(1), pages 1-10, March.

    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. Richard Hornbeck & Pinar Keskin, 2015. "Does Agriculture Generate Local Economic Spillovers? Short-Run and Long-Run Evidence from the Ogallala Aquifer," American Economic Journal: Economic Policy, American Economic Association, vol. 7(2), pages 192-213, May.
    2. Molden, David & Sakthivadivel, Ramasamy & Samad, Madar & Burton, Martin, 2005. "Phases of river basin development: the need for adaptive institutions," Book Chapters,, International Water Management Institute.
    3. Francesco Prota, 2002. "Water Resources And Water Policies," Working Papers 8_2002, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
    4. Deng, Xiaohong & Xu, Zhongmin & Song, Xiaoyu & Zhou, Jian, 2017. "Transaction costs associated with agricultural water trading in the Heihe River Basin, Northwest China," Agricultural Water Management, Elsevier, vol. 186(C), pages 29-39.
    5. Zhang, Junlian, 2007. "Barriers to water markets in the Heihe River basin in northwest China," Agricultural Water Management, Elsevier, vol. 87(1), pages 32-40, January.
    6. José A. Gómez-Limón & Yolanda Martínez Martínez, 2004. "Multicriteria Modelling of Irrigation Water Market at Basin Level," Economic Working Papers at Centro de Estudios Andaluces E2004/26, Centro de Estudios Andaluces.
    7. Wester, P. & Scott, Christopher A. & Burton, Martin, 2005. "River basin closure and institutional change in Mexico’s Lerma-Chapala Basin," Book Chapters,, International Water Management Institute.
    8. Cécile Hérivaux & Jean-Daniel Rinaudo & Marielle Montginoul, 2019. "Exploring the Potential of Groundwater Markets in Agriculture: Results of a Participatory Evaluation in Five French Case Studies," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 6(01), pages 1-28, September.
    9. Francois Molle & Jeremy Berkoff, 2009. "Cities vs. agriculture: A review of intersectoral water re‐allocation," Natural Resources Forum, Blackwell Publishing, vol. 33(1), pages 6-18, February.
    10. Svendsen, Mark & Wester, Philippus & Molle, Francois, 2005. "Managing river basins: an institutional perspective," Book Chapters,, International Water Management Institute.
    11. Easter, K William & Rosegrant, Mark W & Dinar, Ariel, 1999. "Formal and Informal Markets for Water: Institutions, Performance, and Constraints," The World Bank Research Observer, World Bank, vol. 14(1), pages 99-116, February.
    12. Gomez-Limon, Jose A. & Martinez, Yolanda, 2006. "Multi-criteria modelling of irrigation water market at basin level: A Spanish case study," European Journal of Operational Research, Elsevier, vol. 173(1), pages 313-336, August.
    13. Svendsen, Mark (ed.), 2005. "Irrigation and river basin management: options for governance and institutions," IWMI Books, International Water Management Institute, number 138050.
    14. Barkin, David & Klooster, Daniel, 2006. "Water management strategies in urban Mexico: Limitations of the privatization debate," MPRA Paper 15423, University Library of Munich, Germany.
    15. Li, Man & Xu, Wenchao & Rosegrant, Mark W., 2016. "Irrigation, Risk Aversion, and Water Rights under Water Supply Uncertainty," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235753, Agricultural and Applied Economics Association.
    16. Himanshu, Sushil Kumar & Ale, Srinivasulu & Bordovsky, James & Darapuneni, Murali, 2019. "Evaluation of crop-growth-stage-based deficit irrigation strategies for cotton production in the Southern High Plains," Agricultural Water Management, Elsevier, vol. 225(C).
    17. Françeska Tomori & Erik Ansink & Harold Houba & Nick Hagerty & Charles Bos, 2024. "Market power in California's water market," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(3), pages 1274-1299, May.
    18. Evans, Lewis & Counsell, Kevin, 2004. "Struggling Upstream Towards a Framework for Efficient Water Allocation on the Waitaki River and Elsewhere," Working Paper Series 3951, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    19. Thomas Vendryes, 2014. "Peasants Against Private Property Rights: A Review Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 28(5), pages 971-995, December.
    20. R. Quentin Grafton & James Horne & Sarah Ann Wheeler, 2016. "On the Marketisation of Water: Evidence from the Murray-Darling Basin, Australia," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(3), pages 913-926, February.

    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:agreko:245957. 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/aeasaea.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.