English (United Kingdom)

https://curated-unify.zendy.io/wp-json/zendy-region/v1/featured_content/oa?rat=en

https://curated-unify.zendy.io/wp-json/zendy-region/v1/highlighted_journal/

Zendy Plus

Presents the access of premium content as premium feature

Premium Content

Presents the keyphrase highlighting as premium feature

Keyphrase Highlighting

Presents the summarisation as premium feature

Summarisation

Insights

Presents the pdf analysis as premium feature

PDF Analysis

Presents the zaia usage as premium feature

ZAIA

Zendy Tools

Zendy Open

The need for increased agricultural production to meet the growing demand for food, coupled with concernsfor environmental sustainability, economic growth and poverty reduction has increased demand on the alreadyscarce water in South Africa. At the same time, because of agriculture’s minimal contribution, compared to theindustrial and mining sectors, to South Africa’s GDP and employment, the call to reallocate water from agricultureto non-agricultural use has been intensified.This study updates the 1998 Social Accounting Matrix (SAM) for South Africa and uses the computablegeneral equilibrium model to analyze the impact of water reallocation from agriculture to the non-agriculturalsectors on output growth, value added at factor cost, which captures the payments from the production sectorsto the factors of production, and households’ welfare.Using different water reallocation scenarios, the simulation results indicate that water reallocation from agricultureto non-agricultural sectors beyond the level of a market allocation scenario will lead to a decline in sectoraloutput and a significant deterioration in the welfare of poor households. It thus undermines developmentefforts aimed at reducing the existing level of poverty in the country.The authors are grateful to the International Food Policy Research Institute (IFPRI), Statistics SouthAfrica (STATSSA), Trade and Industrial Policy Strategy of South Africa (TIPS) and the Department ofWater Affairs and Forestry (DWAF), for the use of their different data sources; and to the AfricanEconomic Research Consortium (AERC), United States Agency for International Development (USAID)and the University of Colorado, Boulder, for jointly funding the study

Market efficiency and welfare effects of inter-sectoral water allocation in South Africa