Estimating the marginal value of agricultural irrigation water: A methodology and empirical application to the Berg River Catchment

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dc.contributor.advisorTurpie, Janeen_ZA
dc.contributor.advisorCartwright., Antonen_ZA
dc.contributor.authorMuller, Jacoben_ZA
dc.date.accessioned2017-09-26T14:57:20Z
dc.date.available2017-09-26T14:57:20Z
dc.date.issued2017en_ZA
dc.description.abstractThis study aims to facilitate effective and efficient intersectoral water allocation policy in South Africa, where limited water supplies are increasingly constraining necessary economic development. The study develops an economic model of irrigated agricultural production that recognises the multi-output nature of irrigated agriculture as well as the institutional setting in which commercial irrigation water is allocated in South Africa. The model is then used to econometrically estimate the marginal value of commercial irrigation water in the Berg Water Management Area (WMA), using a Translog functional form, Tobit censored regression model, including controls for heterogeneity, and accounting for heteroscedasticity. The estimates are obtained for 16 irrigated crops in the region and range from an overall mean of 4.84 R/m³ for peaches to 0.14 R/m³ for wheat, but vary significantly between sub-regions and according to soil productivity as well as between crops. Furthermore, the estimates differ substantially from the average value of production per m³ of irrigation water, reflecting a revenue-water elasticity that differs from unity for all crops. The results imply that potential efficiency gains are possible from the intersectoral reallocation of water away from agriculture. A further implication is that reallocation within the agricultural sector would be most efficiently undertaken by farmers themselves, due to the large number factors that affect irrigation water productivity but are unobservable by policymakers or are difficult to account for in the formulation of policy.en_ZA
dc.identifier.apacitationMuller, J. (2017). <i>Estimating the marginal value of agricultural irrigation water: A methodology and empirical application to the Berg River Catchment</i>. (Thesis). University of Cape Town ,Faculty of Commerce ,School of Economics. Retrieved from http://hdl.handle.net/11427/25409en_ZA
dc.identifier.chicagocitationMuller, Jacob. <i>"Estimating the marginal value of agricultural irrigation water: A methodology and empirical application to the Berg River Catchment."</i> Thesis., University of Cape Town ,Faculty of Commerce ,School of Economics, 2017. http://hdl.handle.net/11427/25409en_ZA
dc.identifier.citationMuller, J. 2017. Estimating the marginal value of agricultural irrigation water: A methodology and empirical application to the Berg River Catchment. University of Cape Town.en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Muller, Jacob AB - This study aims to facilitate effective and efficient intersectoral water allocation policy in South Africa, where limited water supplies are increasingly constraining necessary economic development. The study develops an economic model of irrigated agricultural production that recognises the multi-output nature of irrigated agriculture as well as the institutional setting in which commercial irrigation water is allocated in South Africa. The model is then used to econometrically estimate the marginal value of commercial irrigation water in the Berg Water Management Area (WMA), using a Translog functional form, Tobit censored regression model, including controls for heterogeneity, and accounting for heteroscedasticity. The estimates are obtained for 16 irrigated crops in the region and range from an overall mean of 4.84 R/m³ for peaches to 0.14 R/m³ for wheat, but vary significantly between sub-regions and according to soil productivity as well as between crops. Furthermore, the estimates differ substantially from the average value of production per m³ of irrigation water, reflecting a revenue-water elasticity that differs from unity for all crops. The results imply that potential efficiency gains are possible from the intersectoral reallocation of water away from agriculture. A further implication is that reallocation within the agricultural sector would be most efficiently undertaken by farmers themselves, due to the large number factors that affect irrigation water productivity but are unobservable by policymakers or are difficult to account for in the formulation of policy. DA - 2017 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2017 T1 - Estimating the marginal value of agricultural irrigation water: A methodology and empirical application to the Berg River Catchment TI - Estimating the marginal value of agricultural irrigation water: A methodology and empirical application to the Berg River Catchment UR - http://hdl.handle.net/11427/25409 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/25409
dc.identifier.vancouvercitationMuller J. Estimating the marginal value of agricultural irrigation water: A methodology and empirical application to the Berg River Catchment. [Thesis]. University of Cape Town ,Faculty of Commerce ,School of Economics, 2017 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/25409en_ZA
dc.language.isoengen_ZA
dc.publisher.departmentSchool of Economicsen_ZA
dc.publisher.facultyFaculty of Commerceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherEconomicsen_ZA
dc.titleEstimating the marginal value of agricultural irrigation water: A methodology and empirical application to the Berg River Catchmenten_ZA
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMComen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceThesisen_ZA
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