Willingness To Pay For Water And Water Rights
Definition: Study Among Smallholder Irrigators
In Limpopo Province, South Africa
Author(s)
S. Speelman, M. D’Haese1, A. Frija, S. Farolfi & L. D’Haese
Abstract
Internationally there is growing understanding that water rights are important
and that a lack of effective water rights systems creates major problems for the
management of increasingly scarce water supplies. In South Africa the
smallholder irrigation sector faces two major challenges. Firstly water use is
inefficient and secondly government, which in the past invested huge amounts of
money in the sector, targets improved cost recovery. Improving the definition of
the water rights system can have a positive effect with regard to these challenges.
At one hand improvements in the definition of water rights can stimulate
smallholders to use water more productively, encouraging cooperation and
investment; at the other hand an improved water rights system increases
willingness to pay for water, allowing government to charge higher water prices
and thus improve cost recovery. This study proposes contingent ranking to
analyse the willingness to pay of smallholder irrigators for changes in the water
rights system. Results indicate that smallholders are prepared to pay considerably
higher water prices if these prices are connected with advancements in the water
rights system. In a second step the sample population was stratified to evaluate
the impact of smallholder characteristics on their willingness to pay. The
groups. For example farmers suffering water shortages attach more importance
to secure water supply. Policy makers can use such results to guide reforms in
the design of water rights and to increase public support for interventions.
Keywords: contingent ranking, water rights, South Africa, willingness to pay,
irrigation, efficiency.
Keywords
contingent ranking, water rights, South Africa, willingness to pay,
irrigation, efficiency
Related Book
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