Water markets an alternative for central water allocation

摘要: South Africa is entering a whole new era in water management. In the face of efforts to curtail runaway government spending and protect environment, institutions must foster conservation efficient allocation existing supplies. They also take water's growing recreational environmental value into account. The crucial question is, can current meet today's requirements? Despite resulting inefficiency waste, traditional resource economists continue identify taxes, regulations, subsidies, governmental as solutions problems. Internationally, there enough evidence prove that central with almost any gave rise gross inefficiency. main reason distortions on placed resources within such centralised planning environment. Resources are either valued high or low. What freshwater how be allocated way reflect scarcity water? A non-linear spatial equilibrium model was developed simulate impact potential market Upper-Berg River: Western Cape. This paper explores markets an alternative decisions