Measuring total economic benefits from water in plantation forestry: Application of quasi I-0 framework to the Crocodile catchment in South Africa

Synopsis

A quasi input-output framework was applied to measuring direct and indirect economic benefits from water use in plantation forestry in the Crocodile river catchment of South Africa. The study accounted for indirect economic benefits generated in downstream timber processing activities and input supply sectors linked with timber plantations as part of the total economic benefits from water use in forestry. The derived measure oftotal economic benefits from water use was 9 to 16 fold higher than the estimate of direct benefits (in terms of value added and employment) generated at the primary gum and pine production activities (plantation gate), respectively. The study results showed the importance of considering indirect economic benefits realised in forward and backward sectors linked with the primary production activity in evaluating water allocation strategies and policy regimes.