IDEAS home Printed from https://ideas.repec.org/a/ags/agreko/31727.html
   My bibliography  Save this article

Water marketing in the Crocodile River, South Africa

Author

Listed:
  • Nieuwoudt, W. Lieb
  • Gillitt, C.G.
  • Backeberg, G.R.

Abstract

Transfers of water in the Crocodile River above and below the gorge (near Nelspruit and Malelane) were studied based on a survey in the area during November 2003, followed up by telephonic interviewing during March 2004. Almost all the water trades (permanent and rentals) observed in this study were from farmers above the gorge to farmers below the gorge. In order to study whether the water market promotes efficiency the data were subjected to several statistical analyses (Principal Components, Ridge Regression, Logit). It is concluded that in the transfer of water some attributes in the purchasing area such as lower production risk (sugar cane) and lower financial risk and better cash flow (bananas and sugar cane) were more important than the income per cubic meter of water. Water supply in this area is highly irregular while farmers were found to be extremely risk averse especially as far as down-side risk is concerned. The average water price in this area in recent years (2002 to 2003) was between R2,000 and R3,000 per ha (1ha = 8,000 cubic meter). Buyers are large progressive farmers that purchase (and rent) from many sellers (or lessees). It is concluded that information (sale prices and rents) is asymmetrical. Few permanent transfers have taken place in the Crocodile River in recent years. It is concluded that there are reasons why transfers at present are not processed and role players should discuss these reasons and possible solutions before further action is taken.

Suggested Citation

  • Nieuwoudt, W. Lieb & Gillitt, C.G. & Backeberg, G.R., 2005. "Water marketing in the Crocodile River, South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(3), pages 1-19, September.
  • Handle: RePEc:ags:agreko:31727
    DOI: 10.22004/ag.econ.31727
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/31727/files/44030383.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.31727?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. Huffaker, Ray G. & Whittlesey, Norman K., 1995. "Agricultural Water Conservation Legislation: Will It Save Water?," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 10(4), pages 1-5.
    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. R. Quentin Grafton & Clay Landry & Gary D. Libecap & Sam McGlennon & Bob O’Brien, 2010. "An Integrated Assessment of Water Markets: Australia, Chile, China, South Africa and the USA," ICER Working Papers 32-2010, ICER - International Centre for Economic Research.
    2. Bajaj, Akshi & Singh, S.P. & Nayak, Diptimayee, 2022. "Impact of water markets on equity and efficiency in irrigation water use: A systematic review and meta-analysis," Agricultural Water Management, Elsevier, vol. 259(C).
    3. Grove, Bennie & Oosthuizen, Lukas Klopper, 2010. "Stochastic efficiency analysis of deficit irrigation with standard risk aversion," Agricultural Water Management, Elsevier, vol. 97(6), pages 792-800, June.

    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. Michelsen, Ari M. & Taylor, R. Garth & Huffaker, Ray G. & McGuckin, J. Thomas, 1999. "Emerging Agricultural Water Conservation Price Incentives," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(1), pages 1-17, July.
    2. Kovacs, Kent F. & Wailes, Eric & West, Grant & Popp, Jennie & Bektemirov, Kuatbay, 2014. "Optimal Spatial-Dynamic Management of Groundwater Conservation and Surface Water Quality with On-Farm Reservoirs," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 46(4), pages 1-28, November.
    3. Ding, Ya & Peterson, Jeffrey M., 2012. "Comparing the Cost-Effectiveness of Water Conservation Policies in a Depleting Aquifer: A Dynamic Analysis of the Kansas High Plains," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 44(2), pages 223-234, May.
    4. Soumya Balasubramanya & Nicholas Brozović & Ram Fishman & Sharachchandra Lele & Jinxia Wang, 2022. "Managing irrigation under increasing water scarcity," Agricultural Economics, International Association of Agricultural Economists, vol. 53(6), pages 976-984, November.
    5. Scheierling, Susanne M. & Young, Robert A. & Cardon, Grant E., 2004. "Determining the Price-Responsiveness of Demands for Irrigation Water Deliveries versus Consumptive Use," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(2), pages 1-18, August.
    6. Turner, Brenda & Perry, Gregory M., 1997. "Agriculture To Instream Water Transfers Under Uncertain Water Availability: A Case Study Of The Deschutes River, Oregon," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 22(2), pages 1-14, December.
    7. Willis, David B. & Caldas, Jose Vaz & Frasier, W. Marshall & Wittlesey, Norman K. & Hamilton, Joel R., 1998. "The Effects Of Water Rights And Irrigation Technology On Streamflow Augmentation Cost In The Snake River Basin," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(1), pages 1-19, July.
    8. Huang, Qiuqiong & Wang, Jinxia & Li, Yumin, 2017. "Do water saving technologies save water? Empirical evidence from North China," Journal of Environmental Economics and Management, Elsevier, vol. 82(C), pages 1-16.
    9. Kent Kovacs & Grant West, 2016. "The Influence of Groundwater Depletion from Irrigated Agriculture on the Tradeoffs between Ecosystem Services and Economic Returns," PLOS ONE, Public Library of Science, vol. 11(12), pages 1-22, December.
    10. 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.
    11. Michelsen, Ari M. & McGuckin, J. Thomas & Taylor, R. Garth & Huffaker, Ray G., 1998. "Irrigation District Adoption Of Water Conserving Rate Structures," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20964, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Xu, Ying & Kovacs, Kent & Nalley, Lanier & Popp, Michael, 2015. "Investment in on-farm reservoirs to align economic returns and ecosystem services," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196778, Southern Agricultural Economics Association.
    13. Susanne Scheierling & David O. Treguer & James F. Booker, 2016. "Water Productivity in Agriculture: Looking for Water in the Agricultural Productivity and Efficiency Literature," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(03), pages 1-33, September.
    14. Wang, Jinxia & Zhu, Yunyun & Sun, Tianhe & Huang, Jikun & Zhang, Lijuan & Guan, Baozhu & Huang, Qiuqiong, 2020. "Forty years of irrigation development and reform in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(1), January.
    15. Willis, David B., 2008. "Impact of Irrigation Efficiency Improvements and Government Payment Programs on the Agricultural Cost of Groundwater Conservation in the Texas High Plains," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6269, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Kovacs, Kent & Popp, Michael & Bryce, Kristofer & West, Grant, 2015. "On-Farm Reservoir Adoption in the Presence of Spatially Explicit Groundwater Use and Recharge," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(1), pages 1-27.

    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:agreko:31727. 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.