IDEAS home Printed from https://ideas.repec.org/a/ags/agreko/54210.html
   My bibliography  Save this article

Water markets an alternative for central water allocation?

Author

Listed:
  • Louw, D.B.
  • van Schalkwyk, Herman D.

Abstract

South Africa is entering a whole new era in water management. In the face of efforts to curtail runaway government spending and protect the environment, water institutions must foster the conservation and efficient allocation of existing supplies. They must also take water's growing recreational and environmental value into account. The crucial question is, can the current water institutions meet today's requirements? Despite the resulting inefficiency and waste, traditional resource economists continue to identify taxes, regulations, subsidies, and governmental allocation as solutions to today's water problems. Internationally, there is enough evidence to prove that central allocation with almost any resource gave rise to gross inefficiency. The main reason is the distortions on the value placed on resources within such a centralised planning environment. Resources are either valued to high or to low. What is the value of freshwater and how can water be allocated in such a way as to reflect the scarcity value of water? A non-linear spatial equilibrium model was developed to simulate the impact of a potential water market in the Upper-Berg River: Western Cape. This paper explores water markets as an alternative to central water allocation decisions

Suggested Citation

  • Louw, D.B. & van Schalkwyk, Herman D., 2000. "Water markets an alternative for central water allocation?," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 39(4), pages 1-11, December.
    • Handle: RePEc:ags:agreko:54210
    DOI: 10.22004/ag.econ.54210
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/54210/files/05%20_38_%20%20Louw%20_%20Van%20Schalkwyk%20Dec%202000.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.54210?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. Norman K. Whittlesey & Ray G. Huffaker, 1995. "Water Policy Issues for the Twenty-first Century," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(5), pages 1199-1203.
    2. Eigenraam, Mark & Stoneham, Gary, 1997. "Water Policy Development: An Application to Inter-State Trade," 1997 Conference (41st), January 22-24, 1997, Gold Coast, Australia 135752, Australian Agricultural and Resource Economics Society.
    3. Batterham, Robert L. & MacAulay, T. Gordon, 1994. "Price-Linked Farm And Spatial Equilibrium Models," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 38(2), pages 1-28, August.
    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. Yokwe, Stanley, 2009. "Water productivity in smallholder irrigation schemes in South Africa," Agricultural Water Management, Elsevier, vol. 96(8), pages 1223-1228, August.

    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. Wimalasuriya, Rukman & Eigenraam, Mark, 2001. "An Agro-economic Model that Optimises Crop-Pasture-Fallow Rotations from all Theoretical Possibilities," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 126065, Australian Agricultural and Resource Economics Society.
    2. GP Green & JP O'Connor, 2001. "Water Banking And Restoration Of Endangered Species Habitat: An Application To The Snake River," Contemporary Economic Policy, Western Economic Association International, vol. 19(2), pages 225-237, April.
    3. Grove, Bennie & Oosthuizen, L.K., 1998. "Quantifying Economic And Environmental Trade-Offs Of Instream Flow Requirements: A Comparison Between Stewart-Hagan And Stewart Crop Yield Relationships," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 37(4), pages 1-11, December.
    4. Backeberg, G.R., 1997. "Water institutions, markets and decentralized resource management: Prospects for innovative policy reforms in irrigated agriculture," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 36(4), pages 1-35, December.
    5. Greenville, Jared W. & MacAulay, T. Gordon, 2005. "Tariffs and steel: US safeguard actions," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(3), pages 1-18.
    6. Schuck, Eric C. & Green, Gareth P., 2002. "Farm Level Irrigation Technology Decisions Over Time," 2002 Annual meeting, July 28-31, Long Beach, CA 19632, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Greenville, Jared W. & MacAulay, T. Gordon, 2004. "Tariffs and Steel: The US Safeguard Actions," 2004 Conference (48th), February 11-13, 2004, Melbourne, Australia 58452, Australian Agricultural and Resource Economics Society.
    8. Pfeiffer, Lisa & Lin, C.-Y. Cynthia, 2014. "Does efficient irrigation technology lead to reduced groundwater extraction? Empirical evidence," Journal of Environmental Economics and Management, Elsevier, vol. 67(2), pages 189-208.
    9. Anderson, Duncan J. & Jack, Claire G., 2011. "Developing the Spatial Dimension of Farm Business Models," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108782, Agricultural Economics Society.
    10. Li, Haoyang & Zhao, Jinhua, 2016. "Rebound Effect of Irrigation Technologies? The Role of Water Rights," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235966, Agricultural and Applied Economics Association.
    11. Langyintuo, Augustine S., 2010. "Grain Distribution in Ghana under Imperfectly Competitive Market Conditions," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96166, African Association of Agricultural Economists (AAAE).
    12. Lee, Gi-Eu & Rollins, Kimberly S. & Singletary, Loretta, 2017. "An Empirical Analysis of Water Allocation Efficiency through the Prior Appropriation Doctrine: A Case Study in the Carson River Valley, Nevada," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258225, Agricultural and Applied Economics Association.
    13. Wimalasuriya, Rukman & Eigenraam, Mark, 2000. "Transferring Paddock Histories to Optimise Crop Rotations Using LP: a New, Unrestricted Approach," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123740, Australian Agricultural and Resource Economics Society.

    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:54210. 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.