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Development of a generic model to assess the costs associated with eutrophication
Expanded Title:The objective of this work was to develop a generic first order model of the direct and indirect costs of eutrophication in South Africa and apply it to the Vaal Dam. This was a desktop study. The modelling was applied to estimate costs to agriculture, water treatment, property, and recreation. A combination of fixed effects, ‘seemingly unrelated regression’ (SUR), and willingness to pay methods and integrated models were used. Importantly, these analyses were based on annual average levels, even though eutrophication levels can change significantly over very much shorter time scales. This data averaging inevitably resulted in underestimates of the cost impacts of eutrophication. The integrated SUR model indicated the following. Annual agricultural costs caused by phosphorous varied from R 145/ha to R 455/ha. Property costs in relation to chlorophyll a varied from R 850/sq.metre to R 3 340/sq.metre. Water treatment costs due to ammonia alone varied from 0.1 cents/kL to R 18 cents/kL. The costs of exceeding Resource Water Quality Objectives for chlorophyll a and phosphate (each 30 microg/L) varied considerably but were as much as R 2 900/ha for agriculture, R 18 800/sq.metre for property prices, and 144 cents/kL for water treatment. In order to better estimate the economic impacts of eutrophication, it will be necessary to adopt a modelling approach that takes account of the impacts of extreme eutrophic circumstances.
Date Published:01/04/2012
Document Type:Research Report
Document Keywords:Financial Models, Technology, Water Quality
Document Format:Report
Document File Type:pdf
Research Report Type:Standard
WRC Report No:1568/1/12
ISBN No:978-1-4312-0265-2
Authors:Graham M; Blignaut J; de Villiers L; Mostert D; Sibande X; Gebremedhin S; Harding W; Rossouw N; Freese S
Project No:K5/1568
Organizations:Institute of Natural Resources
Document Size:2 128 KB
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