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Simulation of the effects of water pricing scenarios on smallholder irrigators in South Africa

(2008) Water Resource Management. p.604-015-604-019
Author
Organization
Abstract
The growing water scarcity worldwide puts pressure on irrigation systems as main consumptive user to improve performance. In developing countries, where today agricultural water use is often still heavily subsidised, a tendency exists of introducing water pricing policies to stimulate rational water use. The exact impact of water pricing policies in terms of water saving or its effect on the farmers’ production systems remains unknown. This study introduces a new two-stage method that allows estimating at farm level the effects on the agricultural production process and water demand of introducing or raising a water price. In the first stage the technical efficiency frontier is constructed and the technical and allocative efficiency levels of each farm are calculated. This representation of the technology is used in the second stage in a profit maximization model. Applying the method to small-scale irrigators in South Africa, it is shown that water demand of farmers is quite responsive even to small changes in the water price. Furthermore, introduction of a water price is found to significantly decrease farm profit, which is particularly problematic for poor farmers.
Keywords
agricultural water use, data envelopment analysis, South Africa, water pricing

Citation

Please use this url to cite or link to this publication:

MLA
Speelman, Stijn, Marijke D’Haese, Jeroen Buysse, et al. “Simulation of the Effects of Water Pricing Scenarios on Smallholder Irrigators in South Africa.” Water Resource Management. Ed. O Totolo. Calgary, AB, Canada: Acta Press, 2008. 604–015–604–019. Print.
APA
Speelman, S., D’Haese, M., Buysse, J., Frija, A., Farolfi, S., & D’Haese, L. (2008). Simulation of the effects of water pricing scenarios on smallholder irrigators in South Africa. In O. Totolo (Ed.), Water Resource Management (pp. 604–015–604–019). Presented at the Water Resource Management (AfricaWRM 2008), Calgary, AB, Canada: Acta Press.
Chicago author-date
Speelman, Stijn, Marijke D’Haese, Jeroen Buysse, Aymen Frija, Stefano Farolfi, and Luc D’Haese. 2008. “Simulation of the Effects of Water Pricing Scenarios on Smallholder Irrigators in South Africa.” In Water Resource Management, ed. O Totolo, 604–015–604–019. Calgary, AB, Canada: Acta Press.
Chicago author-date (all authors)
Speelman, Stijn, Marijke D’Haese, Jeroen Buysse, Aymen Frija, Stefano Farolfi, and Luc D’Haese. 2008. “Simulation of the Effects of Water Pricing Scenarios on Smallholder Irrigators in South Africa.” In Water Resource Management, ed. O Totolo, 604–015–604–019. Calgary, AB, Canada: Acta Press.
Vancouver
1.
Speelman S, D’Haese M, Buysse J, Frija A, Farolfi S, D’Haese L. Simulation of the effects of water pricing scenarios on smallholder irrigators in South Africa. In: Totolo O, editor. Water Resource Management. Calgary, AB, Canada: Acta Press; 2008. p. 604–015–604–019.
IEEE
[1]
S. Speelman, M. D’Haese, J. Buysse, A. Frija, S. Farolfi, and L. D’Haese, “Simulation of the effects of water pricing scenarios on smallholder irrigators in South Africa,” in Water Resource Management, Gaborone, Botswana, 2008, pp. 604-015-604–019.
@inproceedings{593571,
  abstract     = {The growing water scarcity worldwide puts pressure on irrigation systems as main consumptive user to improve performance. In developing countries, where today agricultural water use is often still heavily subsidised, a tendency exists of introducing water pricing policies to stimulate rational water use. The exact impact of water pricing policies in terms of water saving or its effect on the farmers’ production systems remains unknown. This study introduces a new two-stage method that allows estimating at farm level the effects on the agricultural production process and water demand of introducing or raising a water price. In the first stage the technical efficiency frontier is constructed and the technical and allocative efficiency levels of each farm are calculated. This representation of the technology is used in the second stage in a profit maximization model. Applying the method to small-scale irrigators in South Africa, it is shown that water demand of farmers is quite responsive even to small changes in the water price. Furthermore, introduction of a water price is found to significantly decrease farm profit, which is particularly problematic for poor farmers.},
  author       = {Speelman, Stijn and D'Haese, Marijke and Buysse, Jeroen and Frija, Aymen and Farolfi, Stefano and D'Haese, Luc},
  booktitle    = {Water Resource Management},
  editor       = {Totolo, O},
  isbn         = {978-0-88986-765-9},
  keywords     = {agricultural water use,data envelopment analysis,South Africa,water pricing},
  language     = {eng},
  location     = {Gaborone, Botswana},
  pages        = {604-015--604-019},
  publisher    = {Acta Press},
  title        = {Simulation of the effects of water pricing scenarios on smallholder irrigators in South Africa},
  year         = {2008},
}