Africa has many electricity supply problems with major causes being natural causes (drought), oil price shock, system disruption by conflict, and low investment in electricity generation. To solve the problem, many countries adopted several reforms. However, the reforms failed to bring solutions. Electricity sector privatisation has received great criticism. Individual firms and households resorted to own private power generation due to electricity supply inadequacy from the public grid supply, as is the feature of many African countries. This paper focuses on sub-Saran Africa's electricity supply inadequacy. It provides the economic implications of power outages.
Estuaries in South Africa face negative crowding effects with respect to motorised boat use because of competing demand. This paper proposes this be managed through user charges and that the setting of these charges be informed by applying a choice experiment to estimate user preferences for reduced motorised boat congestion on the Kromme River Estuary, Eastern Cape. The application of this method led the paper to deduce that users are willing to pay an additional supplementary charge of R548 per annum during peak periods (only) in order to experience a decrease in negative crowding effects. JEL Classification: Q26
Recent government legislation in South Africa (the National Environmental Management: Biodiversity Act, No.10 of 2004) calls for the removal of trout from ecosystems and habitats where they may cause harm. The elimination of trout would, however, undermine the tourism appeal of many upper catchments in South Africa to recreational fishers. This paper reports the first formal recreational valuation of a trout fishery in South Africa - the one in and around Rhodes village, North Eastern Cape. The valuation is carried out by applying the individual travel cost method using several count data models. The zero truncated negative binomial model which allows for the non-negative integer nature of the trip data, for truncation as well as for over-dispersion, found that the consumer surplus per day and per trip to the Rhodes trout fishery was ZAR2 668 (US$334) and ZAR13,072 (US$1634), respectively in the year 2007, and the total consumer surplus generated was ZAR18,026,288 (US$2 253,286).trout, South Africa, travel cost method, count data, recreational value,
The Sundays River Estuary, situated in the Eastern Cape, South Africa, has excessive recreational demand for estuarine services, specifically recreational fishing. The estuary has been over-fished, putting its sustainability at risk. Various management interventions may be required in order to save it, but how is this to be done without reducing welfare? The main aim of this paper is twofold: first, to assess and comprehend the economic value of the estuarine resources at stake; and, second, to propose policy measures to redress the situation (excessive demand, specifically recreational fishing). An application of a choice experiment reveals that the physical size of fish stocks is a very important predictor of recreational choice at the Sundays River Estuary, and it is recommended that demand be curtailed through an increase in the boat license fee for using the estuary of ZAR174 per annum.
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