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

Teresa Walter, Julia Kloos and Daniel Tsegai

No 97035, Discussion Papers from University of Bonn, Center for Development Research (ZEF)

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.

Keywords: Resource/Energy; Economics; and; Policy (search for similar items in EconPapers)
Pages: 21
Date: 2010-11
New Economics Papers: this item is included in nep-afr and nep-env
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:ubzefd:97035

DOI: 10.22004/ag.econ.97035

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