Economy-wide benefits from water-intensive industries in South Africa: Quasi-input-output analysis of the contribution of irrigation agriculture and cultivated plantations in the Crocodile River catchment

Abstract

A quasi-input-output framework was employed to measure and compare economy-wide benefits from irrigated crops and cultivated plantations in the Crocodile River catchment. The results of the analysis showed that it makes a huge difference to consider not only direct economic benefits from water-using activities, but also their economy-wide benefits and multisector linkages for evaluating water allocation regimes and policies. A completely opposite ranking of the compared activities was obtained when economy-wide effects (including indirect multipliers) were taken into account, compared with considering only direct benefits.