M.Comm / This dissertation comprises of four parts that attempt to explain the history and application of shadow pricing in South African water projects with reference to water resource development and water pricing reforms. Water is a precious resource and people simply cannot survive without fresh water. It becomes a vital function to then price water correctly and therefore revolutionise the way water is treated. The application of CBA has become increasingly important over recent years Governments often finance these projects, but there is a need for a consistent or standard framework to evaluate capital projects to minimise the risk and possible losses. As a result a manual and method to evaluate spending priorities was developed in the 1980’s in South Africa. CBA has found extensive applications in the field of water development. Important issues such as the opportunity cost of water and a method to calculate the economic value or the opportunity cost of water have been developed further in South Africa over the past few years. It emphasises that pricing water can be a complicated process affected by various forces, many of which are difficult to define and model. The History and Application of Shadow Pricing in South African Water Projects Page v This dissertation demonstrates that the strategies employed in each country are different variations of CBA, with the use of shadow pricing and are adapted to each countries varying circumstance. The political experiences in South Africa have placed strain on the countries scarce national resources. As a result there is a need for some kind of framework and method to evaluate spending and pricing of infrastructure and importantly the development of water pricing reforms and management thereof. The study concludes that there is limited literature that actually defines and explains how shadow prices are calculated in water resource management. Wrong policy or planning decisions can often be a result of price distortions. Therefore, countries are becoming more aware that external factors, such as social welfare and the environment need to be taken into consideration.

M.Comm. / Southern Africa is considered by the rest of the world to be a water scarce region. Previously within the region water was not regarded as a high profile subject in the development process. A paradigm shift is required in the region to recognise the need to concentrate on demand management instead. The paper briefly examines the climatic conditions as a contributing factor to scarcity of the water resources. It further focuses on the human factor which is regarded as a factor that can be managed as opposed to the climatic conditions. In managing the human factor, the usage of water cannot remain the same as it was before the scarcity problem that the SADC region is faced with. It is also recognised that water resource is necessary for survival, therefore basic human requirements are examined. This scarcity makes water to be regarded as an economic good. The paper further explains the elements that make water to be regarded as an economic good. Water being an economic good, it commands a price. The study explains pricing the resource as the only method of making the population understand about the importance of the resource. Different pricing methods are explained in detail. To demonstrate this demand management of water the study interrogates three cities namely Soweto, Cape Town and Durban. In this interrogation the demand management techniques used and their efficiency are compared and contrasted to ascertain the efficiency of the chosen demand management techniques and the existence of gaps within these techniques.

Thesis (M.C.P.)--Massachusetts Institute of Technology, Dept. of Urban Studies and Planning, 1980. / MICROFICHE COPY AVAILABLE IN ARCHIVES AND ROTCH. / Bibliography: leaves 68-73. / by Maryann McCall-Taylor. / M.C.P.

Bibliography: leaves 414-427. / xx, 427 leaves : ill. ; 30 cm. / Title page, contents and abstract only. The complete thesis in print form is available from the University Library. / Thesis (Ph.D.)--University of Adelaide, Dept. of Civil and Environmental Engineering, 1995?

Please read the abstract in the 00front part of this document / Dissertation (MCom (Agricultural Economics))--University of Pretoria, 2006. / Agricultural Economics, Extension and Rural Development / unrestricted