THE IMPACT OF TRANSACTION COSTS ON WATER TRADE IN A WATER MARKET ALLOCATION REGIME
| Autor: | D. B. Louw, H. D. van Schalkwyk |
|---|---|
| Rok vydání: | 2001 |
| Předmět: |
Transaction cost
Economics and Econometrics business.industry media_common.quotation_subject Geography Planning and Development Environmental economics Variable cost Water trading Microeconomics Agriculture Water market Programming paradigm Economics Resource use Function (engineering) business Agronomy and Crop Science media_common |
| Zdroj: | Agrekon. 40:780-793 |
| ISSN: | 2078-0400 0303-1853 |
| DOI: | 10.1080/03031853.2001.9524992 |
| Popis: | The costs involved in the transfer of property, or transaction costs, and the costs of transporting water, can significantly affect the capacity of any market to operate efficiently. If water marketing is to achieve its full potential, markets must be designed to minimise these costs. A water allocation model was used to determine the effect of transaction costs on trade. The model includes whole farm non-linear programming models embedded in a spatial equilibrium framework to simulate a water demand function for agriculture in the Berg River as well as demand functions for urban water users in the larger Cape Town region. Positive mathematical programming (PMP) is included to calibrate the regional model to the exact observed base year resource use. The results clearly demonstrate the negative impact of high transaction costs on water trade. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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