Industrial Water Demand Analysis in the Middle Olifants Sub-Basin of South Africa
Industrial Water Demand Analysis in the Middle Olifants Sub-Basin of South Africa

Author: Teresa Linz

Publisher:

Published: 2013

Total Pages: 0

ISBN-13:

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This paper seeks to determine water demand of the mining sector in the Middle Olifants sub-basin of South Africa. Despite the growing economic importance of mining in the area, only little is known about its water demand and the role of water in the mines ́ extraction process. By means of econometric estimation water price elasticities as well as substitution possibilities between water and other inputs are derived to analyze the response of mines to changes in water tariffs. Using primary data, a translog cost function is estimated for five mines operating in the area. Cost share equations of each input are specified and estimated using Seemingly Unrelated Regression (SUR) method. The mean cost share of water for all five mines, with around 1%, is relatively small, reflecting the low water tariff and results show industrial water demand to be inelastic. Nevertheless, with water price elasticity values ranging from -0.77 to -0.95 for the five mines, there is a potential to influence water use patterns through higher tariffs. As mines are water intensive industries, possible water savings owing to raised water tariffs should not be neglected. Water intake is found to be a substitute for labor and capital for most of the mines, implying that capital investments in water saving technologies might be an alternative means to reduce water intake of the mining sector.

Economic Analysis of Water Supply Cost Structure in the Middle Olifants Sub-Basin of South Africa
Economic Analysis of Water Supply Cost Structure in the Middle Olifants Sub-Basin of South Africa

Author: Daniel W. Tsegai

Publisher:

Published: 2013

Total Pages: 0

ISBN-13:

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Using data gathered from the National Treasury of South Africa, we examine the structure of water supply costs and tariffs of Water Service Authorities (WSAs) in the Middle Olifants sub-basin of South Africa. Using the translog cost function method, the marginal cost of water supply and economies of scale are estimated. Comparison of tariffs and marginal costs show that the estimated marginal cost is higher than the actual tariff paid by consumers. This implies that WSAs in the Middle Olifants are not charging enough to recover the costs of the water services. Thus, among other things, pricing of water at its marginal cost would partly assist in solving the cost recovery problem. Raised tariffs would in turn contribute to improved efficiency of water use. As evidenced by estimation results of returns to scale (greater than one), merger of WSAs would be economically advantageous. Hence, reversing the process of transferring water services' authority to 'local' municipality level and thus up-scaling WSAs into the 'district' municipality level is an important policy option for improving water services efficiency in the Middle Olifants sub-basin of South Africa.

Evaluation of historic, current and future water demand in the Olifants River Catchment, South Africa
Evaluation of historic, current and future water demand in the Olifants River Catchment, South Africa

Author: McCartney, Matthew P., Arranz, Roberto

Publisher: IWMI

Published: 2007

Total Pages: 51

ISBN-13: 9290906723

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Water resource development has played a significant role in the expansion of agriculture and industry in the Olifants River Catchment. However, currently water deficit is one of the major constraints hampering development in the catchment; both the mining and agricultural sectors are producing below optimal levels because of their reliance on insufficient supplies. In this study, the Water Evaluation and Planning (WEAP) model was used to evaluate scenarios of historic, current and future water demand in the catchment. For each scenario, the WEAP model was used to simulate demand in five different sectors (rural, urban, mining, commercial forestry and irrigation) over a 70-year period of varying rainfall and hydrology. Levels of assured supply were estimated for each sector and the economic cost of failing to provide water was predicted. For the future scenarios, the impact of infrastructure development and water conservation measures were assessed. The study illustrates how a relatively simple model can provide useful insight for resource planning and management.

Application of the Water Evaluation and Planning (WEAP) Model to Assess Future Water Demands and Resources in the Olifants Catchment, South Africa
Application of the Water Evaluation and Planning (WEAP) Model to Assess Future Water Demands and Resources in the Olifants Catchment, South Africa

Author: Roberto Arranz

Publisher: IWMI

Published: 2007

Total Pages: 104

ISBN-13: 9290906545

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The Olifants catchment is one of 19 Catchment Management Areas in South Africa. Different water users (i.e., rural, urban, mining, subsistence and commercial irrigated agriculture, commercial forestry, industry and power generation) are present in the catchment. Rising population andincreasing water provision in rural areas, in conjunction with the development of the mining industry, the construction of new power generation plants, the implementation of environmental flows andthe need to meet international flow requirements are going to greatly exacerbate the complexity of future water resources management in what is already a water-stressed catchment. Being able to assess the ability of the catchment to satisfy potential water demands is crucial in order to plan for the future and make wise decisions. In this study, a scenario analysis approach was used in conjunction with the Water Evaluation And Planning model, in order to assess the impacts of possible water demands on the water resources of the Olifants catchment in 2025. Foreach scenario, the water resource implications were compared to a 1995 “baseline.” The model enabled analyses of unmet water demands, streamflows and water storage for each scenario. The model results show that for the different scenarios considered in this study the implementation of the Environmental Reserve (an instream requirement to guarantee the health of the riverine ecosystems) will increase the shortages for other sectors. The construction of the main water storage infrastructure proposed by the Department of Water Affairs and Forestry, in conjunction with the application of Water Conservation and Demand Management practices, can reduce the unmet demands and shortfalls to levels lower than, or similar to, those experienced in the 1995 baseline. However, in all cases these interventions will be insufficient to completely meet the demands of all the sectors. A tight control of the growth in future demands is essential, although this may be difficult in a rapidly developing country like South Africa.

Hydrology and water resources development in the Olifants River Catchment
Hydrology and water resources development in the Olifants River Catchment

Author: M.P. McCartney

Publisher: IWMI

Published: 2004

Total Pages: 58

ISBN-13: 9290905638

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The Olifants River is one of the major tributaries of the Limpopo River. Approximately 3,400,000 people live in its catchment and a considerable proportion of South Africa’s mining, power production and agricultural activities are concentrated there. The catchment also encompasses important tourist destinations (e.g., the Kruger National Park). Consequently, in terms of the national economy it is one of the country’s most significant waterways. The catchment is one of the first in South Africa for which a Catchment Mangement Agency (CMA) is planned.

Handbook of Water Economics
Handbook of Water Economics

Author: Ariel Dinar

Publisher: Edward Elgar Publishing

Published: 2015-09-25

Total Pages: 541

ISBN-13: 1782549668

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Water scarcity, whether in the quality or quantity dimension, afflicts most countries. Decisions on water management and allocation over time, space, and among uses and users involve economic considerations. This Handbook assembles research that represents recent thinking and applications in water economics. The book chapters are written by leading scholars in the field who address issues related to its use, management, and value. The topics cover analytical methods, sectoral and intersectoral water issues, and issues associated with different sources of water.