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Impact Area: Water and the
Economy
Scope
In the SA context water is, first and foremost,
treated as a common (social) good. Water is recognised as being
essential for sustaining life and is a commodity to which people and the
aquatic environment have a legally protected right. However, water is
also recognised as an economic good, the use of which has a major impact
on the creation of wealth and the well-being of people. Almost without
exception, there is an increasing interest in assessing the economic
value of water, using water as a catalyst for the generation of wealth
and prosperity, and using economic instruments to increase efficiency
and effect desired behavioural change among water users. The use of
water tariffs to effect changes in water consumption and the use of
waste discharge charges to internalise pollution costs and, in so doing,
effect pollution reduction and desirable improvements in water quality,
are examples of management options that are being implemented along with
the selling of water use licences under specific circumstances. There is
also recognition of the need to deal with complex water-economy systems
such as catchments and to determine how sensitive socio-economic
activities and their associated value are to the impacts of extreme
events such as floods or droughts, or to gradual changes over the longer
term, such as global climate change.
This Impact Area will continue to integrate the economic aspects of
water-related investigations funded by the KSAs. It will also identify
overarching issues that need to be addressed at a higher level of
integration. Projects and activities under this Impact Area will
determine the role of water in economic development, the use of economic
instruments for improved water management and the economics of dealing
with complex systems at the appropriate micro-, regional and national
levels.
Objectives
This Impact Area aims to
be instrumental in integrating the economic aspects of water-related
investigations that are under way within the WRC's KSAs, and in
identifying and initiating further important investigations which may be
needed in this domain, Water and the Economy.
The primary aim of the research portfolio facilitated through this
Impact Area is to demonstrate the applicability of economic principles
in the water field and to provide convincing evidence as well as sound
knowledge and support to water management institutions and implementing
authorities. The legal framework is already reasonably accommodating and
stakeholders are therefore expected to be receptive to the knowledge
generated.
Secondary objectives are to:
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Assess the role of
water in economic development
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Use economic
instruments for improved management of water
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Deal with complex
water economy systems
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