Research Areas

Exploring the Economics of Water

Research Areas of the Water Economics Research Unit

Our unit is dedicated to advancing the understanding of the complex economic issues surrounding water resources. Our research areas include:

  1. Impact of water scarcity on agriculture and food production

  2. Water pricing and subsidy policies

  3. Water resource management and allocation

  4. Climate change and water resource planning

  5. Water quality and pollution control

  6. Economic analysis of water conservation and efficiency technologies

We study these areas with the goal of informing policies and practices that promote sustainable and equitable use of water resources. Through our research, we aim to provide valuable insights for policymakers, industry leaders, and the general public.

Impact of water scarcity on agriculture and food production

Our economics research unit conducts interdisciplinary research on the impact of water scarcity on agriculture and food production. Our research focuses on understanding the economic and policy-related factors that influence the ability of farmers and food producers to access sufficient water resources in the face of scarcity.

We use a combination of quantitative and qualitative methods, including econometric analysis, case studies, and field experiments, to examine the ways in which water scarcity affects crop yields, irrigation decisions, and the overall productivity and profitability of agricultural systems. We also explore the potential for new technologies, such as precision irrigation and water-saving technologies, to mitigate the effects of water scarcity on agriculture.

In addition to our empirical research, we also work closely with stakeholders in the agricultural sector, including farmers, policymakers, and representatives from the water management industry, to develop practical solutions to the challenges of water scarcity. Our goal is to provide valuable insights and recommendations for policymakers, practitioners, and other stakeholders working to ensure the sustainable and equitable use of water resources in the agricultural sector.

Overall our research intends to contribute in understanding the economic and policy-related factors that can help in addressing the water scarcity problem, which is critical for ensuring food security and sustainable agricultural growth in an era of climate change.

Water pricing and subsidy policies

Our unit studies the impact of water pricing and subsidy policies on households and businesses. The research team is using a combination of econometric analysis, field experiments, and case studies to examine how changes in water prices and subsidies affect water usage, conservation, and economic outcomes.

One key focus of the research is understanding the trade-offs between increasing water prices to encourage conservation and ensuring that low-income households have access to affordable water. The research team is also exploring how subsidies for water-efficient technologies and infrastructure can be designed to maximize their effectiveness.

The findings from this research will be used to inform policy decisions related to water pricing and subsidies, with the goal of promoting both economic efficiency and social equity. The research unit will be publish their research in academic journals,presenting it in conferences, also share their findings with policy makers, stakeholders and public through reports, webinars and other forms of outreach.

Water resource management and allocation

Our research unit focuses on studying water resource management and allocation, with a particular emphasis on understanding the economic principles and incentives that govern the use and distribution of water resources. We examine a range of issues related to water allocation, including the design and implementation of water markets, the impacts of water scarcity and drought, and the economic and policy implications of different water management practices. Through our research, we aim to provide policy makers and stakeholders with the tools and insights they need to make informed decisions about how to manage and allocate water resources in an efficient and sustainable manner.

Climate change and water resource planning

Our economics research unit is dedicated to understanding the impacts of climate change on water resource planning. We use a combination of theoretical and empirical methods to study the economic costs and benefits of different water management policies. Our research focuses on issues such as the impact of droughts and floods on agricultural production, the costs and benefits of different water conservation strategies, and the economic effects of sea level rise on coastal communities. We also examine the potential for markets and pricing mechanisms to help manage and adapt to the impacts of climate change on water resources. Our goal is to provide policymakers and practitioners with the information they need to make informed decisions about how to best manage and protect our water resources in the face of a changing climate.

Water quality and pollution control

The Water Economics Research Unit's research on water quality and pollution control focuses on understanding the economic drivers of water pollution and the effectiveness of different policy tools for addressing it. We use a combination of theoretical modeling and empirical analysis to study the costs and benefits of different pollution control strategies, such as the use of regulations, market-based mechanisms, and technological innovation. Our research also examines the impacts of water pollution on various stakeholders, including households, businesses, and the environment. The goal of our research is to inform policymakers and practitioners about the most efficient and effective ways to improve water quality and reduce pollution.

Economic analysis of water conservation and efficiency technologies

The water economics research unit at the University of Cape Town specializes in the study of natural resource conservation and management, with a particular focus on water resources. Our team of economists and policy analysts use a combination of economic modeling and field data to understand the costs and benefits of various water conservation and efficiency technologies. We are particularly interested in studying how different water pricing and regulatory policies can encourage greater adoption of these technologies, and how these policies can be designed to balance the needs of different stakeholders, such as farmers, municipalities, and industry. Our goal is to provide decision-makers with the information they need to develop sustainable and effective water management policies. Some of our recent research projects have included an analysis of the cost-effectiveness of different agricultural irrigation technologies, an examination of the economic benefits of municipal water conservation programs, and a study of the effects of water markets on water allocation and efficiency. Our findings are published in leading economics and policy journals, and we also engage with policymakers and practitioners to ensure that our research is relevant and actionable.