Should commercial forestry in South Africa pay for water? Valuing water and its contribution to the industryShould commercial forestry in South Africa pay for water? Valuing water and its contribution to the industry

Abstract

3 July 2005 (WTP) for the good rather than go without it. 1, where DD1 is the demand curve for water. In other words, the WTP value may be approximated by measuring consumer sur plus. There are two measures of welfare changes: compensating variation (CV) and equivalent variation (EV). , 1982; Willig, 1976) However, in applying the above model to commercial forestry, two major problems arise. Firstly, water is not consumed directly by final consumers, unlike the case of drinking water. Secondly, no explicit market for water exists. Hence, the direct tmeasurement of utility is not possible.

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