Double dividends of additional water charges in South Africa

SOURCE: Nature's wealth: the economics of ecosystem services and poverty
OUTPUT TYPE: Chapter in Monograph
PUBLICATION YEAR: 2013
TITLE AUTHOR(S): J.H.Van Heerden, R.S.J.Tol, R.Gerlagh, J.N.Blignant, S.M.Hess, M.Horridge, M.Mabugu, R.E.Mabugu, M.P.De Wit
SOURCE EDITOR(S): P.J.H.Van Beukering, E.Papyrakis, J.Bouma, R.Brouwer
KEYWORDS: WATER CONCESSIONS, WATER MANAGEMENT, WATER SERVICE DELIVERY
Print: HSRC Library: shelf number 8056
HANDLE: 20.500.11910/2659
URI: http://hdl.handle.net/20.500.11910/2659

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Abstract

The purpose of this chapter is to show how double dividends could be obtained from using market instruments to tax water use in a developing country. The double dividends are namely environmental on the one hand and poverty reduction dividends on the other. A water tax on selected industries in South Africa to reduce demand for water are applied and then transfer the revenue from this tax to the poor to achieve reduction in absolute levels of poverty.