- A-Z Publications
- South African Journal of Economic and Management Sciences
- OA African Journal Archive
- Volume 5, Issue 2, 2002
South African Journal of Economic and Management Sciences - Volume 5, Issue 2, 2002
Volumes & issues
Volume 5, Issue 2, 2002
Source: South African Journal of Economic and Management Sciences 5, pp 277 –287 (2002)More Less
Can the environment wait in developing countries? Should countries focus on growth first and worry about cleaning up later? Is there an optimal mix between growth, development, and environmental management? These are all real issues facing the world's community of developing countries. The following presentation suggests that the answer to this question is that the environment does not have to wait.
Author Ogunlade R. DavidsonSource: South African Journal of Economic and Management Sciences 5, pp 288 –296 (2002)More Less
The conventional development paradigm appears to have failed the poor regions of the world. It has led to a widening gap between rich and poor, while the world as a whole is getting richer. Attempts to integrate social and environmental concerns into the conventional development paradigm have led to the concept of sustainable development.
The integration of economics and the environment through incentives: an overview of the Costan Rican success storySource: South African Journal of Economic and Management Sciences 5, pp 297 –307 (2002)More Less
Conservation is often perceived as the responsibility of the landowners. If landowners fail to benefit from conservation, they inevitably view it as profit eroding and it becomes less attractive than alternative land-use practices. Costa Rica has successfully internalised the benefits provided by forestry environmental services. Valuable lessons could be learnt from the Costa Rican experience in using economic incentives for environmental management.
Author M.P. De WitSource: South African Journal of Economic and Management Sciences 5, pp 308 –335 (2002)More Less
The foremost limitation of public policy approaches is that the context of the public policy problem is not taken into account. In the case of complex and dynamic environmental problems, such as global climate change, there is a need for a framework for approaching economic policy that takes account of the complexity and changing realities of such problems. The objective of this paper is to present a framework to approach economic policy making in a case of such complex and dynamic environmental problems. The literature on economic and public policy theories, the need for a systematic policy design process and approaches to complexity and dynamics in policy making is framework available to one where the focus is on the best learning process to facilitate economic policy making on complex and dynamic environmental problems. Based on sociological models of experiential learning, a multiple-loop learning framework (MLLF) is presented. This model illustrates the importance of orchestrated science-policy interactions through interactive learning. The opportunities and limitations of this model are discussed with reference to the debate on economic policy for global climate change.
Author Jessica WilsonSource: South African Journal of Economic and Management Sciences 5, pp 336 –353 (2002)More Less
Agenda 21, the blueprint for sustainable development, adopted at the Earth Summit in Rio de Janeiro in 1992, does not have a chapter dedicated to trade. Yet since 1992, trade has become increasingly important to democracy, human rights, women's rights, economic development, employment and the environment. ""Trade and environment"" has been identified by many governments and civil society organisations as an important policy issue in preparations for the World Summit on Sustainable Development. At the same time, environment has become a highly politicised word in the world inhabited by trade negotiators. The aim of this paper is to examine whether or not the inclusion of WTO environmental negotiations, as outlined in the Doha Ministerial Declaration, advances or retards sustainable development.
Source: South African Journal of Economic and Management Sciences 5, pp 354 –378 (2002)More Less
Access to water has become an important policy goal in South Africa. A tariff system including free access for the basic residential water supply, and an increasing block tariff has been introduced all over the country. Water is a necessity, but for most households the marginal consumption is used for less important options. This must be reflected both in the water demand and in the pricing policy. This article introduces three different welfare functions, all including a group of rich consumers and a group of poor ones. The standard additive utility welfare, the weighted utility welfare and the Rawlsian welfare function are all used. For each of them the block tariff system is used to find the maximum welfare. We also discuss how the 'water for free' policy affects welfare, and how to set a low price segment or a free amount of water and the block tariff in each case. For each tariff system we also do comparative statistics of the parameters to study how changes in the policy approach will influence the optimal water tariff system. In conclusion the article explains how the choice of pricing policy can reflect the underlying welfare considerations.
Source: South African Journal of Economic and Management Sciences 5, pp 379 –394 (2002)More Less
Preliminary desktop studies have been carried out to illustrate the potential value of metropolitan open space areas in Durban and Cape Town using speculative estimates derived mainly from values in the international literature. This paper investigates the effects that a selected open space (Zandvlei in Muizenberg) has on nearby property values and attaches values to the space using a combination of estate agent interviews and statistical analysis (hedonic pricing). The results indicate that using statistical analysis generates reasonably similar valuation estimates when compared to the use of estate agent interviews. The property price premiums or discounts associated with open spaces are found to be case specific, but certain trends are discernable that should apply to all areas. Finally, the strengths and weaknesses of the property price approach are discussed.
Source: South African Journal of Economic and Management Sciences 5, pp 395 –412 (2002)More Less
Malaria is one of the world's most serious and complex health problems. It is also one of the diseases identified as most likely to be affected by climate change, because transmission is sensitive to temperature and rainfall. The objective of this paper is to provide an initial economic valuation of the increased incidence of malaria due to projected changes in climate in South Africa, excluding costs and benefits of prevention and adaptation. We use market based economic valuation tools for morbidity, including cost of treatment and lost short term productivity, and report lost disability adjusted life years from malaria mortality due to climate change. We also discuss how human capital and willingness to pay approaches could be used for mortality valuation. The results show that the opportunity cost of increased morbidity from malaria would be between R277 million and R466 million in 2010, while the lost disability adjusted life years from increased mortality would be from 11 800 to 18 300 years in that year.
Source: South African Journal of Economic and Management Sciences 5, pp 413 –429 (2002)More Less
Projects implemented under the Clean Development Mechanism (COM) need to establish a baseline. The baseline is a projection of greenhouse gas emissions that would have occurred without the project. Establishing baselines that allow for sustainable development through COM projects is a key challenge, especially in poor communities. The COM rules explicitly allow for baselines that account for emissions ""above current levels due to specific circumstances of host parties"". This provision lends support to crediting of growth in demand for energy services where it is currently suppressed as a result of poverty and/or lack of infrastructure or suppressed demand. The question is whether the existing level of consumption is the baseline or the future expected level of consumption including ""development"" advances in provision of energy services and as a result of poverty alleviation is the baseline. Or should development be allowed to get dirty before it qualifies to become clean? The paper presents a baseline methodology that provides opportunities for suppressed demand to be predicted and counted.
Author M.F. Armour, R.J. & ViljoenSource: South African Journal of Economic and Management Sciences 5, pp 430 –451 (2002)More Less
Leaching is necessary to maintain an acceptable salt balance in the root-zone of irrigated crops. This however contributes to point and non-point source water pollution externalities if not managed correctly. The use of a linear programming model, SALMOD (Salinity and Leaching Model for Optimal Irrigation Development) is demonstrated to determine the feasibility of leaching, artificial drainage, and on-farm storage/evaporation ponds to manage degraded return flows entering the water source and groundwater. Results show optimal cropping compositions and management practices to maximise farm returns subject to water quality conditions and return flow constraints. The economic effects of constraining return-flows and of water pricing policy on the volume of return flows are also determined. Results show valuable policy information regarding the interactions between artificial drainage subsidisation, return flow restrictions and on-farm storage.
Economic analysis of the eradication and management of invasive alien vegetation in the Mhlatuze River Catchment (KwaZulu-Natal, South Africa)Source: South African Journal of Economic and Management Sciences 5, pp 452 –472 (2002)More Less
Alien invasive vegetation threatens the functioning and existence of natural ecosystems in South Africa because many of these plants have no predators or competitors, allowing them to dominate the ecosystem which they inhabit. The rapid proliferation of this alien vegetation, ascribed to the increase in afforestation and changes in land use, has had significant adverse impacts on water resources, biodiversity and the stability as well as integrity of these ecosystems. Although eradicating alien invasive vegetation gives rise to a number of different benefits, this process entails enormous costs. Consequently, in order to establish the economic viability of alien plant eradication it is essential to analyse these costs as well as the benefits associated with eradication.
Author A TrikamSource: South African Journal of Economic and Management Sciences 5, pp 473 –498 (2002)More Less
This report identifies the major opportunities for climate change mitigation through industrial energy efficiency and fuel switching in South Africa. The potential for greenhouse gas reduction (outlining areas of possible resultant CDM investment) in local industry, a CO2 mitigation cost curve and accounting of emissions reductions in existing and future industrial plants, will provide the basis for realising these opportunities. Greenhouse gas mitigation in the industrial sector is closely linked with 2 groups: energy efficiency improvements and fuel switching; and these options are outlined in more detail in this report.