Image Database Export Citations


Double Dividends of Additional Water Consumption Charges in South Africa

Show full item record

Type: Working Paper
Author: Letsoalo, A.; Blignaut, J.; De Wet, T.; De Wit, M.; Hess, S.; Tol, R.; Van Heerden, J.
Date: 2005
Series: Poverty Reduction and Environmental Programme, no. 05/01
URI: https://hdl.handle.net/10535/5981
Sector: Agriculture
Water Resource & Irrigation
Region: Africa
Subject(s): poverty
water resources
economic development
environmental economics
Abstract: "South Africa is a water-scarce country with an average rainfall of 500 mm per year. It is estimated that national water demand will exceed supply by 2025. Increasing the water supply would be environmentally, financially or politically unfeasible. Impoverished communities, especially those in rural areas, require access to water for drinking, cooking and other basic purposes (such as agriculture). Only approximately 24 per cent of rural people have access to water on site. Unemployment in the rural areas of South Africa is estimated at about 34 per cent. This study seeks to explore ways of reducing poverty in South Africa while implementing policies that address water scarcity problems. The South African Government is exploring ways to address water scarcity problems by introducing a water resource management charge. This will be based on the quantity of water used, and applied to sectors such as irrigated agriculture, mining and forestry. This is expected to achieve both a more efficient allocation and lower use of water, as well as helping to alleviate poverty. This paper reports on the validity of these options, providing more information for the policy-making process. This study applies a computable general-equilibrium model to analyse the double dividend of water consumption charges in South Africa. The first dividend is environmental: more water will be available as a result of an additional water charge; the second dividend is developmental: revenue generated from these charges will be recycled back into poverty alleviation programmes."

Files in this item

Files Size Format View
double dividends.pdf 467.7Kb PDF View/Open

This item appears in the following document type(s)

Show full item record