Toward universal sustainability: strategies and guidelines
- Authors: Robertson, Struan Ross
- Date: 2019
- Subjects: Sustainability , Sustainable development , Economic development , Social planning
- Language: English
- Type: text , Thesis , Masters , MEcon
- Identifier: http://hdl.handle.net/10962/71591 , vital:29922
- Description: This research considers the notion of universal sustainability, which involves the three well-known pillars of sustainable development, namely, economic development, social development, and environmental sustainability. Critical to achieving this unity of purpose in the aligning of economic and social aspirations with the limits of the natural environment is the enhancing of human capability and the development of political institutions capable of representing the interests of all people by leveraging resources responsibly. Universal sustainability differs from the concept of sustainable development in that the emphasis is cast not on merely achieving economic development despite the challenges presented by social and environmental concerns, but on seeking to understand what a better society might look like that integrates outcomes in-line with these three factors. Universal sustainability is about re-thinking the purpose of material progress to realign this with the need for social cohesion and to reposition human values and expectations safely within ecological boundaries. In other words, strategies and guidelines that promote the realisation of universal sustainability would recommend a society that values economic and technological progress with equal measure to social development and environmental sustainability, as well as all the other factors that promote human wellbeing. Consequently, this research also considers the inter-linkages that are found between economic development (i.e. technological advancement) and social (i.e. normative progress) and societal (i.e. long-term institutional differentiation) development with respect to labour markets, the formation of skills, the scope of welfare regimes and hence, the trajectory of the social reproduction of society. The prospects of environmental sustainability, like that of societal development, are found to be influenced by the values that a society holds and the ability of economic and social factors to adapt in response to the environmental challenges that face societies in socially workable ways. This research concerns the great quest for meaning and purpose that humans have undertaken throughout history, and asks how human wellbeing – in its best, most expansive sense, can be improved and how societies can advance and prosper going forward while keeping the avenue of individual self-actualisation open as a possibility in the everyday lives of citizens? In achieving this end, this research looks at what economic development strategies suggest as tenable against these aspirations. Furthermore, this research looks at the experience of advanced democratic societies to better conceive of how material progress, social cohesion via education and welfare, and environmental sustainability can be attained. The selection of these countries ensures understanding for the kind of political arrangements that safeguard human wellbeing and give voice to freedom, material opportunities, and civic responsibilities. Critical to both these assessments is defining the mechanics that underlie the processes that achieve material and moral progress in human societies. The main goal of this research is to recommend strategies and guidelines for developing countries like South Africa that wish to develop and thrive. Therefore, this research presents an assessment framework for understanding both universal sustainability and how to achieve it. This research concludes that mindfulness about the natural environment and the services it supplies, as well as mindfulness about what drives economic development and what supports the conditions for human flourishing, are necessary for universal sustainability strategies and guidelines to work. Indeed, the ideologies that societies subscribe to and the values they hold are important 84 to creating the right conditions for economic tools to work to advance economic development, material improvement, socio-environmental justice, and ultimately for achieving universal sustainability. But central to both economic and environmental futures is an understanding that at the heart of the matter is a concern for apprehending what drives human behaviour and aspiration, and what creates social cohesion.
- Full Text:
- Date Issued: 2019
- Authors: Robertson, Struan Ross
- Date: 2019
- Subjects: Sustainability , Sustainable development , Economic development , Social planning
- Language: English
- Type: text , Thesis , Masters , MEcon
- Identifier: http://hdl.handle.net/10962/71591 , vital:29922
- Description: This research considers the notion of universal sustainability, which involves the three well-known pillars of sustainable development, namely, economic development, social development, and environmental sustainability. Critical to achieving this unity of purpose in the aligning of economic and social aspirations with the limits of the natural environment is the enhancing of human capability and the development of political institutions capable of representing the interests of all people by leveraging resources responsibly. Universal sustainability differs from the concept of sustainable development in that the emphasis is cast not on merely achieving economic development despite the challenges presented by social and environmental concerns, but on seeking to understand what a better society might look like that integrates outcomes in-line with these three factors. Universal sustainability is about re-thinking the purpose of material progress to realign this with the need for social cohesion and to reposition human values and expectations safely within ecological boundaries. In other words, strategies and guidelines that promote the realisation of universal sustainability would recommend a society that values economic and technological progress with equal measure to social development and environmental sustainability, as well as all the other factors that promote human wellbeing. Consequently, this research also considers the inter-linkages that are found between economic development (i.e. technological advancement) and social (i.e. normative progress) and societal (i.e. long-term institutional differentiation) development with respect to labour markets, the formation of skills, the scope of welfare regimes and hence, the trajectory of the social reproduction of society. The prospects of environmental sustainability, like that of societal development, are found to be influenced by the values that a society holds and the ability of economic and social factors to adapt in response to the environmental challenges that face societies in socially workable ways. This research concerns the great quest for meaning and purpose that humans have undertaken throughout history, and asks how human wellbeing – in its best, most expansive sense, can be improved and how societies can advance and prosper going forward while keeping the avenue of individual self-actualisation open as a possibility in the everyday lives of citizens? In achieving this end, this research looks at what economic development strategies suggest as tenable against these aspirations. Furthermore, this research looks at the experience of advanced democratic societies to better conceive of how material progress, social cohesion via education and welfare, and environmental sustainability can be attained. The selection of these countries ensures understanding for the kind of political arrangements that safeguard human wellbeing and give voice to freedom, material opportunities, and civic responsibilities. Critical to both these assessments is defining the mechanics that underlie the processes that achieve material and moral progress in human societies. The main goal of this research is to recommend strategies and guidelines for developing countries like South Africa that wish to develop and thrive. Therefore, this research presents an assessment framework for understanding both universal sustainability and how to achieve it. This research concludes that mindfulness about the natural environment and the services it supplies, as well as mindfulness about what drives economic development and what supports the conditions for human flourishing, are necessary for universal sustainability strategies and guidelines to work. Indeed, the ideologies that societies subscribe to and the values they hold are important 84 to creating the right conditions for economic tools to work to advance economic development, material improvement, socio-environmental justice, and ultimately for achieving universal sustainability. But central to both economic and environmental futures is an understanding that at the heart of the matter is a concern for apprehending what drives human behaviour and aspiration, and what creates social cohesion.
- Full Text:
- Date Issued: 2019
Quantifying the water savings benefit of water hyacinth (Eichhornia crassipes) control in the Vaalharts Irrigation Scheme
- Authors: Arp, Reinhardt
- Date: 2016
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: http://hdl.handle.net/10962/409 , vital:19956
- Description: Global fresh water resources are under increasing pressure from an ever-growing population and global economic development, highlighting the need for sustainable water management. Effective sustainable management must also control any additional factors that may aggravate the water scarcity problem. Invasive alien plants present such an aggravating threat, and pose a particular problem for water scarce countries in particular. South Africa is not immune to this global phenomenon, with plant invasions estimated to carry an annual loss of R5.8 billion in water provisioning services. Given the country’s semi-arid climate, and relative water scarcity, the threat presented by invasive plants needs to managed effectively for the sustainability of the countries already scarce fresh water resources. One species in particular, water hyacinth (Eichhornia crassipes), is regarded as one of the most destructive aquatic weeds in the world. The threat presented by this weed is of particular concern for economically productive water resources, such as irrigation water. Through high levels of evapotranspiration, water hyacinth leads to substantial water losses that could otherwise have been used more productively, thereby creating an externality on irrigation fed agriculture. An economic valuation of irrigation water and the loss thereof from water hyacinth, is a step towards improved water management and alien plant control. This will provide policy makers, stakeholders and irrigation managers with the relevant information they need to improve sustainability, allocate scarce resources more efficiently and enhance the returns to water. This thesis provides such an evaluation of the benefits of water hyacinth control, using the Vaalharts Irrigation Scheme as a case study. The benefit of water hyacinth control programmes are essentially ‘avoided costs’ of no control. The study quantified the water saving benefits of water hyacinth control for the Vaalharts Irrigation Scheme at Warrenton Weir on the Vaal River, South Africa. Three evapotranspiration to evaporation (ET:EW) ratios at three levels of invasion (100; 50 and 25% cover) were used to estimate the net annual water loss at Warrenton Weir. A Residual Value Method was employed to estimate the average production value of irrigation water, to serve as a proxy for the value of water lost via evapotranspiration by water hyacinth. The average production value of irrigation water for the Vaalharts was estimated to be R300/m3, which translated into an annual benefit of between R500 million and R9 billion. However, due to various limitations associated with the valuation method, the inflationary bias of estimating the average value of water and the unlikelihood of ET:EW ratios being larger than 1.4 in reality, it was suggested that R500 million was the more realistic value of the benefit of control. Despite being a conservative estimation, the benefit still equated to a quarter of the annual production value of the irrigation scheme, suggesting the water hyacinth could potentially reduce the productivity of the scheme by as much as 25% in the event of a scarcity of water on the scheme. The results of this research highlight the need for invasive plant control, especially where invasions affect economically productive water resources. Therefore, it is recommended that alien plant control policy prioritise invasions of this nature, as they present significant costs to the economy yet carry substantial benefits.
- Full Text:
- Date Issued: 2016
- Authors: Arp, Reinhardt
- Date: 2016
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: http://hdl.handle.net/10962/409 , vital:19956
- Description: Global fresh water resources are under increasing pressure from an ever-growing population and global economic development, highlighting the need for sustainable water management. Effective sustainable management must also control any additional factors that may aggravate the water scarcity problem. Invasive alien plants present such an aggravating threat, and pose a particular problem for water scarce countries in particular. South Africa is not immune to this global phenomenon, with plant invasions estimated to carry an annual loss of R5.8 billion in water provisioning services. Given the country’s semi-arid climate, and relative water scarcity, the threat presented by invasive plants needs to managed effectively for the sustainability of the countries already scarce fresh water resources. One species in particular, water hyacinth (Eichhornia crassipes), is regarded as one of the most destructive aquatic weeds in the world. The threat presented by this weed is of particular concern for economically productive water resources, such as irrigation water. Through high levels of evapotranspiration, water hyacinth leads to substantial water losses that could otherwise have been used more productively, thereby creating an externality on irrigation fed agriculture. An economic valuation of irrigation water and the loss thereof from water hyacinth, is a step towards improved water management and alien plant control. This will provide policy makers, stakeholders and irrigation managers with the relevant information they need to improve sustainability, allocate scarce resources more efficiently and enhance the returns to water. This thesis provides such an evaluation of the benefits of water hyacinth control, using the Vaalharts Irrigation Scheme as a case study. The benefit of water hyacinth control programmes are essentially ‘avoided costs’ of no control. The study quantified the water saving benefits of water hyacinth control for the Vaalharts Irrigation Scheme at Warrenton Weir on the Vaal River, South Africa. Three evapotranspiration to evaporation (ET:EW) ratios at three levels of invasion (100; 50 and 25% cover) were used to estimate the net annual water loss at Warrenton Weir. A Residual Value Method was employed to estimate the average production value of irrigation water, to serve as a proxy for the value of water lost via evapotranspiration by water hyacinth. The average production value of irrigation water for the Vaalharts was estimated to be R300/m3, which translated into an annual benefit of between R500 million and R9 billion. However, due to various limitations associated with the valuation method, the inflationary bias of estimating the average value of water and the unlikelihood of ET:EW ratios being larger than 1.4 in reality, it was suggested that R500 million was the more realistic value of the benefit of control. Despite being a conservative estimation, the benefit still equated to a quarter of the annual production value of the irrigation scheme, suggesting the water hyacinth could potentially reduce the productivity of the scheme by as much as 25% in the event of a scarcity of water on the scheme. The results of this research highlight the need for invasive plant control, especially where invasions affect economically productive water resources. Therefore, it is recommended that alien plant control policy prioritise invasions of this nature, as they present significant costs to the economy yet carry substantial benefits.
- Full Text:
- Date Issued: 2016
Transitions into informal employment: an analysis of South African panel data: 2008-2012
- Authors: Muttze, Takudzwa
- Date: 2016
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: http://hdl.handle.net/10962/4498 , vital:20682
- Description: South Africa’s labour market is characterised by high unemployment but relatively low levels of informal employment, making it distinct from other developing countries. The existing literature appears to show evidence of high mobility rates of labour across labour market states. The coexistence of high labour mobility rates, yet high unemployment and weak informal employment in South Africa’s labour market is therefore puzzling. Considerable research has been done to explain this phenomenon and has suggested that barriers to informal entrepreneurship form the key reason why informal employment is relatively low in South Africa compared to other developing countries. Worker transitions have however not been a focal question in the literature. Using data from the National Tncome Dynamics Study (NTDS 2008-2012), this study sought to examine the characteristics of workers who move into informal employment, attaching importance to those who become self-employed. Transition matrices are constructed showing the proportion of workers who stayed or moved into different labour market states between 2008 and 2012, and linking the movements to 2008 personal characteristics. Churning between labour market states was found to be relatively high, albeit formal wage employment exhibiting immobility. Transitions out of informal employment were high, reflecting its survivalist nature. Conversely, those from unemployment into informal employment, particularly self-employment were low. Using the probit regression model, transitions to informal employment were found to be more associated with workers who are generally marginalised from formal employment opportunities. The results suggest that the South African labour market is to a larger extent not reflective of the Dualist narrative of ease of movement of workers from unemployment into informal employment and barriers into informal entrepreneurship are high. To date, policies which have sought to encourage informal entrepreneurship have not been a success. A central challenge to policymakers is to create an enabling environment for the unemployed to start their own informal businesses. This has the potential of reducing unemployment and poverty rates in the country.
- Full Text:
- Date Issued: 2016
- Authors: Muttze, Takudzwa
- Date: 2016
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: http://hdl.handle.net/10962/4498 , vital:20682
- Description: South Africa’s labour market is characterised by high unemployment but relatively low levels of informal employment, making it distinct from other developing countries. The existing literature appears to show evidence of high mobility rates of labour across labour market states. The coexistence of high labour mobility rates, yet high unemployment and weak informal employment in South Africa’s labour market is therefore puzzling. Considerable research has been done to explain this phenomenon and has suggested that barriers to informal entrepreneurship form the key reason why informal employment is relatively low in South Africa compared to other developing countries. Worker transitions have however not been a focal question in the literature. Using data from the National Tncome Dynamics Study (NTDS 2008-2012), this study sought to examine the characteristics of workers who move into informal employment, attaching importance to those who become self-employed. Transition matrices are constructed showing the proportion of workers who stayed or moved into different labour market states between 2008 and 2012, and linking the movements to 2008 personal characteristics. Churning between labour market states was found to be relatively high, albeit formal wage employment exhibiting immobility. Transitions out of informal employment were high, reflecting its survivalist nature. Conversely, those from unemployment into informal employment, particularly self-employment were low. Using the probit regression model, transitions to informal employment were found to be more associated with workers who are generally marginalised from formal employment opportunities. The results suggest that the South African labour market is to a larger extent not reflective of the Dualist narrative of ease of movement of workers from unemployment into informal employment and barriers into informal entrepreneurship are high. To date, policies which have sought to encourage informal entrepreneurship have not been a success. A central challenge to policymakers is to create an enabling environment for the unemployed to start their own informal businesses. This has the potential of reducing unemployment and poverty rates in the country.
- Full Text:
- Date Issued: 2016
Is economic growth without human development sustainable? : Sub-Saharan Africa’s recent growth acceleration in context
- Authors: Hadisi Basingene, Serge
- Date: 2014
- Subjects: Sustainable development -- Africa, Sub-Saharan , Economic development -- Africa, Sub-Saharan , Poverty -- Africa, Sub-Saharan , Africa, Sub-Saharan -- Social conditions , Africa, Sub-Saharan -- Economic conditions , Africa, Sub-Saharan -- Economic policy
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: vital:1098 , http://hdl.handle.net/10962/d1013137
- Description: The purpose of the study has been to assess the question of sustainability of economic growth and human development, particularly using sub-Saharan Africa in context. Sub-Saharan Africa is an interesting case study because, on the one hand, it has been mired in poverty and remains the least developed region in the world, and on the other, it has experienced a revival in economic growth since the mid-1990s. Economists tend to use the term economic development and economic growth interchangeably. However, questions have been raised about whether Africa’s latest growth episode is indeed ‘development’. Although there are many issues at stake, the key question, and the focus of this thesis, is whether sub-Saharan Africa’s revival is sustainable. The paper sets out the debate between the ‘World Bank view’ and the ‘alternative view’. The main debate lies around how genuine development should be achieved. Firstly, the ‘World Bank view’ claims that economic growth is necessary and sufficient condition to achieve development. Economic growth will be generated by ‘orthodox’ policies and this growth will automatically trickle-down and stimulate development. Secondly, the ‘alternative view’ argues that economic growth is necessary but it is not sufficient to stimulate sustainable development. Economic growth without ‘qualitative’ change is not ‘sustainable’. Indeed, human development shortfalls (as well as other, social, political and structural problems), if not addressed through appropriate policy interventions, can undermine economic growth. The ‘alternative view’ appears to be strongly supported by evidence from other developing regions such as Latin America and East Asia. The empirical study conducted in this thesis reinforces doubts about ‘sustainability’. Even though there are signs of convergence in some indicators; this is not the case for all indicators. More importantly the gap between sub-Saharan Africa and other developing regions remains very wide. Sub-Saharan Africa’s development path remains uncertain. The intention in this study is not to be conclusive that sub-Saharan Africa cannot achieve sustainable development. Rather the study attempts to identify potential hindrances to sub-Saharan Africa’s development and to provide a solid foundation for further research in the same direction.
- Full Text:
- Date Issued: 2014
- Authors: Hadisi Basingene, Serge
- Date: 2014
- Subjects: Sustainable development -- Africa, Sub-Saharan , Economic development -- Africa, Sub-Saharan , Poverty -- Africa, Sub-Saharan , Africa, Sub-Saharan -- Social conditions , Africa, Sub-Saharan -- Economic conditions , Africa, Sub-Saharan -- Economic policy
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: vital:1098 , http://hdl.handle.net/10962/d1013137
- Description: The purpose of the study has been to assess the question of sustainability of economic growth and human development, particularly using sub-Saharan Africa in context. Sub-Saharan Africa is an interesting case study because, on the one hand, it has been mired in poverty and remains the least developed region in the world, and on the other, it has experienced a revival in economic growth since the mid-1990s. Economists tend to use the term economic development and economic growth interchangeably. However, questions have been raised about whether Africa’s latest growth episode is indeed ‘development’. Although there are many issues at stake, the key question, and the focus of this thesis, is whether sub-Saharan Africa’s revival is sustainable. The paper sets out the debate between the ‘World Bank view’ and the ‘alternative view’. The main debate lies around how genuine development should be achieved. Firstly, the ‘World Bank view’ claims that economic growth is necessary and sufficient condition to achieve development. Economic growth will be generated by ‘orthodox’ policies and this growth will automatically trickle-down and stimulate development. Secondly, the ‘alternative view’ argues that economic growth is necessary but it is not sufficient to stimulate sustainable development. Economic growth without ‘qualitative’ change is not ‘sustainable’. Indeed, human development shortfalls (as well as other, social, political and structural problems), if not addressed through appropriate policy interventions, can undermine economic growth. The ‘alternative view’ appears to be strongly supported by evidence from other developing regions such as Latin America and East Asia. The empirical study conducted in this thesis reinforces doubts about ‘sustainability’. Even though there are signs of convergence in some indicators; this is not the case for all indicators. More importantly the gap between sub-Saharan Africa and other developing regions remains very wide. Sub-Saharan Africa’s development path remains uncertain. The intention in this study is not to be conclusive that sub-Saharan Africa cannot achieve sustainable development. Rather the study attempts to identify potential hindrances to sub-Saharan Africa’s development and to provide a solid foundation for further research in the same direction.
- Full Text:
- Date Issued: 2014
The value of non-native fish species : a study of recreational angling in the Amathole district
- Authors: Kinghorn, James Wolmarans
- Date: 2013
- Subjects: Fishing -- Economic aspects -- South Africa -- Eastern Cape Introduced fishes -- Economic aspects -- South Africa -- Eastern Cape Fisheries -- South Africa -- Eastern Cape , Non-native fish species , Recreational angling , Amathole district
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: vital:930 , http://hdl.handle.net/10962/d1001456
- Description: Experience has shown that effective fisheries governance requires a sound understanding of fisheries as systems incorporating both ecological and human dimensions. The Ecosystem Approach to Fisheries requires that the human components of these systems be considered when developing management and governance frameworks. While the potential for inland fisheries to contribute towards societal welfare and the development of rural livelihoods is becoming increasingly apparent, developing South African inland fisheries requires a careful consideration of both their positive and negative impacts, given that they revolve mainly around five of the world‟s top 100 invasive species. This thesis aimed to explore the value of inland recreational fisheries to rural livelihoods in the Amathole District of South Africa, to the regional economy, and to anglers themselves. Three methods were used to isolate this value. Economic impact analysis was used to estimate the combined total economic impact of the 2011 Divisional Tournament (n=31) and the 2012 Amatola Bass Classic (n=100) on the regional economy of the Amathole District, estimated to be R106 625. The travel cost method was applied to data from the 2012 Amatola Bass Classic in order to estimate the social welfare generated by this tournament. The Negative Binomial model, corrected for truncation and endogenous stratification, estimated this value at R 1 960 090. The sustainable livelihoods framework was used to conduct a broad-based analysis of the value of Amatola Wild Trout, the firm which constitutes the fishery surrounding the rural village of Cata. It was found that the fishery had been responsible for a modest pecuniary impact on the community of Cata within its first two years of establishment, although significant improvements in human capital were found to have resulted from the development of the fishery. These results provide insights into the economic dimension of fisheries in the Amathole District, and will prove useful when weighing up the positive and negative impacts of non-native fish species, particularly when informing decisions regarding their potential eradication.
- Full Text:
- Date Issued: 2013
- Authors: Kinghorn, James Wolmarans
- Date: 2013
- Subjects: Fishing -- Economic aspects -- South Africa -- Eastern Cape Introduced fishes -- Economic aspects -- South Africa -- Eastern Cape Fisheries -- South Africa -- Eastern Cape , Non-native fish species , Recreational angling , Amathole district
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: vital:930 , http://hdl.handle.net/10962/d1001456
- Description: Experience has shown that effective fisheries governance requires a sound understanding of fisheries as systems incorporating both ecological and human dimensions. The Ecosystem Approach to Fisheries requires that the human components of these systems be considered when developing management and governance frameworks. While the potential for inland fisheries to contribute towards societal welfare and the development of rural livelihoods is becoming increasingly apparent, developing South African inland fisheries requires a careful consideration of both their positive and negative impacts, given that they revolve mainly around five of the world‟s top 100 invasive species. This thesis aimed to explore the value of inland recreational fisheries to rural livelihoods in the Amathole District of South Africa, to the regional economy, and to anglers themselves. Three methods were used to isolate this value. Economic impact analysis was used to estimate the combined total economic impact of the 2011 Divisional Tournament (n=31) and the 2012 Amatola Bass Classic (n=100) on the regional economy of the Amathole District, estimated to be R106 625. The travel cost method was applied to data from the 2012 Amatola Bass Classic in order to estimate the social welfare generated by this tournament. The Negative Binomial model, corrected for truncation and endogenous stratification, estimated this value at R 1 960 090. The sustainable livelihoods framework was used to conduct a broad-based analysis of the value of Amatola Wild Trout, the firm which constitutes the fishery surrounding the rural village of Cata. It was found that the fishery had been responsible for a modest pecuniary impact on the community of Cata within its first two years of establishment, although significant improvements in human capital were found to have resulted from the development of the fishery. These results provide insights into the economic dimension of fisheries in the Amathole District, and will prove useful when weighing up the positive and negative impacts of non-native fish species, particularly when informing decisions regarding their potential eradication.
- Full Text:
- Date Issued: 2013
Can sport impact rational investor behaviour? : an evaluation of the impact of national sporting performance on stock market returns in South Africa
- Authors: De Beer, Carl Francois
- Date: 2012
- Subjects: Investments -- Psychological aspects -- Research -- South Africa Finance -- Psychological aspects -- Research -- South Africa Sports -- Economic aspects -- Research -- South Africa Sports -- Psychological aspects -- Research -- South Africa
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: vital:1013 , http://hdl.handle.net/10962/d1002748
- Description: The finance industry is an extremely fast and complex world dominated by the Efficient Markets Hypothesis (EMH). This theory contains many assumptions which include that investors are rational utility maximisers and that market prices reflect all relevant economic information available to the public. However, over the years, a new form of financial literature known as behavioural finance has been gaining momentum. Behavioural finance seeks to bridge the gap between psychology and economics in an attempt to gain a better understanding of how markets react to different situations. Behavioural finance has also gained much attention in recent years due to the EMH’s inability to explain many economic anomalies. This study first considers the differences between behavioural finance theory and EMH theory before explaining how an individual’s mood has the ability to influence one’s risk taking preferences. Mood changes were also found to be linked to changes in the way an individual reacts to different situations, the way they thinks and processes thoughts. Negative events were also found to have a greater influence on an individual’s mood than positive events did, resulting in an asymmetric relationship between positive and negative results. This study then examines numerous studies indicating how non-economic events can have a statistical and significant influence on stock market returns before analysing previous literature where sport was found to influence market prices. The aim of this study is to determine if South African national sporting performance can influence investors in such a way that it has the ability to impact on market returns. Using standard event study methodology, this study determines the constant mean return using the daily All-Share price index on the JSE for the period of 1 January 1990 to 31 December 2010. This study focuses on three of South Africa’s most popular sports, namely soccer, cricket and rugby and examine if these three sports have the ability to influence market returns. Although there is some evidence of a relationship between stock returns and sporting performance in the descriptive analysis, the regression results indicate that sporting performance in South Africa does not significantly explain abnormal market returns on the JSE. The study provides a number of possible reasons for this finding and concludes by suggesting areas for future research.
- Full Text:
- Date Issued: 2012
- Authors: De Beer, Carl Francois
- Date: 2012
- Subjects: Investments -- Psychological aspects -- Research -- South Africa Finance -- Psychological aspects -- Research -- South Africa Sports -- Economic aspects -- Research -- South Africa Sports -- Psychological aspects -- Research -- South Africa
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: vital:1013 , http://hdl.handle.net/10962/d1002748
- Description: The finance industry is an extremely fast and complex world dominated by the Efficient Markets Hypothesis (EMH). This theory contains many assumptions which include that investors are rational utility maximisers and that market prices reflect all relevant economic information available to the public. However, over the years, a new form of financial literature known as behavioural finance has been gaining momentum. Behavioural finance seeks to bridge the gap between psychology and economics in an attempt to gain a better understanding of how markets react to different situations. Behavioural finance has also gained much attention in recent years due to the EMH’s inability to explain many economic anomalies. This study first considers the differences between behavioural finance theory and EMH theory before explaining how an individual’s mood has the ability to influence one’s risk taking preferences. Mood changes were also found to be linked to changes in the way an individual reacts to different situations, the way they thinks and processes thoughts. Negative events were also found to have a greater influence on an individual’s mood than positive events did, resulting in an asymmetric relationship between positive and negative results. This study then examines numerous studies indicating how non-economic events can have a statistical and significant influence on stock market returns before analysing previous literature where sport was found to influence market prices. The aim of this study is to determine if South African national sporting performance can influence investors in such a way that it has the ability to impact on market returns. Using standard event study methodology, this study determines the constant mean return using the daily All-Share price index on the JSE for the period of 1 January 1990 to 31 December 2010. This study focuses on three of South Africa’s most popular sports, namely soccer, cricket and rugby and examine if these three sports have the ability to influence market returns. Although there is some evidence of a relationship between stock returns and sporting performance in the descriptive analysis, the regression results indicate that sporting performance in South Africa does not significantly explain abnormal market returns on the JSE. The study provides a number of possible reasons for this finding and concludes by suggesting areas for future research.
- Full Text:
- Date Issued: 2012
Economic impact studies and methodological bias : the case of the National Arts Festival in South Africa
- Authors: Bragge, Brent Reuben
- Date: 2011
- Subjects: Standard Bank National Arts Festival Standard Bank National Arts Festival -- Economic aspects Performing arts festivals- Economic aspects -- South Africa Arts -- Economic aspects -- South Africa Economic impact analysis Edinburgh International Festival -- Economic aspects Klein Karoo Nasionale Kunstefees (Oudtshoorn, South Africa) -- Economic aspects Volksbladfees (Bloemfontein, South Africa) -- Economic aspects
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: vital:968 , http://hdl.handle.net/10962/d1002702
- Description: Over the course of the last three decades, it has become popular practice to evaluate tourism events like cultural festivals in financial terms, through the use of economic impact studies. This can be attributed at least in part to the notable growth in the number of festivals being held globally and, as such, a higher level of competition between festivals for the limited funding which is available. Economic impact studies, and the resultant findings, have thus become powerful tools for the lobbying of sponsorship, and it has become increasingly important that the impact calculations be as accurate as possible, so as to effectively allocate both government and private resources to projects which will be of the greatest benefit to the host region. The allocation of funding is especially vital in an area like the Eastern Cape Province of South Africa, which is faced with many financial difficulties. The allocation of public funds to an event like the National Arts Festival, which is hosted in a relatively wealthy part of the province, might be weighed against initiatives which directly benefit the poorer parts of the region. Although it is acknowledged that the benefits which are felt by the host community of a cultural event go beyond that of the financial, it is often on this basis that festivals are most easily compared. The primary goal of the thesis was to analyse the various forms of methodological bias which can exist in the economic impact analyses (EIA) associated with cultural events. Theoretical considerations were discussed, specifically regarding economic impact as a method of measuring value. Various forms of bias (including data collection, the calculation of visitor numbers, multipliers, defining the area of interest, inclusion of visitor spending, and accounting for benefits only, not costs) are put into a real-life context, through the investigation of economic impact studies conducted on three selected South African festivals (the Volksblad, the Klein Karoo Nasionale Kunstfees, and the National Arts Festival), and one international festival (the Edinburgh Festival). An in-depth comparison of two separate studies conducted at the National Arts Festival (NAF) in 2004 (by Antrobus and Snowball) and 2005 (by Saayman et al.) was made, focussing on the manner in which the economic impact was calculated. Having considered the common forms of bias, and assessing several possible reasons for the difference of approximately twenty million Rand in the advertised economic impacts, it was concluded that, most likely, the miscalculation of visitor numbers was the cause. This was confirmed when the Antrobus and Saayman methods were applied to the 2006 NAF data, and noting that the economic impact figures arrived at were strikingly similar. As such, it is advisable that extreme caution be taken when calculating visitor numbers, as they can significantly influence the outcome of an economic impact study. It is recommended that each study should also have transparent checks in place, regarding the key calculation figures, to ensure that less scrupulous researchers are not as easily able to succumb to the pressure event sponsors might impose to produce inflated impact values.
- Full Text:
- Date Issued: 2011
- Authors: Bragge, Brent Reuben
- Date: 2011
- Subjects: Standard Bank National Arts Festival Standard Bank National Arts Festival -- Economic aspects Performing arts festivals- Economic aspects -- South Africa Arts -- Economic aspects -- South Africa Economic impact analysis Edinburgh International Festival -- Economic aspects Klein Karoo Nasionale Kunstefees (Oudtshoorn, South Africa) -- Economic aspects Volksbladfees (Bloemfontein, South Africa) -- Economic aspects
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: vital:968 , http://hdl.handle.net/10962/d1002702
- Description: Over the course of the last three decades, it has become popular practice to evaluate tourism events like cultural festivals in financial terms, through the use of economic impact studies. This can be attributed at least in part to the notable growth in the number of festivals being held globally and, as such, a higher level of competition between festivals for the limited funding which is available. Economic impact studies, and the resultant findings, have thus become powerful tools for the lobbying of sponsorship, and it has become increasingly important that the impact calculations be as accurate as possible, so as to effectively allocate both government and private resources to projects which will be of the greatest benefit to the host region. The allocation of funding is especially vital in an area like the Eastern Cape Province of South Africa, which is faced with many financial difficulties. The allocation of public funds to an event like the National Arts Festival, which is hosted in a relatively wealthy part of the province, might be weighed against initiatives which directly benefit the poorer parts of the region. Although it is acknowledged that the benefits which are felt by the host community of a cultural event go beyond that of the financial, it is often on this basis that festivals are most easily compared. The primary goal of the thesis was to analyse the various forms of methodological bias which can exist in the economic impact analyses (EIA) associated with cultural events. Theoretical considerations were discussed, specifically regarding economic impact as a method of measuring value. Various forms of bias (including data collection, the calculation of visitor numbers, multipliers, defining the area of interest, inclusion of visitor spending, and accounting for benefits only, not costs) are put into a real-life context, through the investigation of economic impact studies conducted on three selected South African festivals (the Volksblad, the Klein Karoo Nasionale Kunstfees, and the National Arts Festival), and one international festival (the Edinburgh Festival). An in-depth comparison of two separate studies conducted at the National Arts Festival (NAF) in 2004 (by Antrobus and Snowball) and 2005 (by Saayman et al.) was made, focussing on the manner in which the economic impact was calculated. Having considered the common forms of bias, and assessing several possible reasons for the difference of approximately twenty million Rand in the advertised economic impacts, it was concluded that, most likely, the miscalculation of visitor numbers was the cause. This was confirmed when the Antrobus and Saayman methods were applied to the 2006 NAF data, and noting that the economic impact figures arrived at were strikingly similar. As such, it is advisable that extreme caution be taken when calculating visitor numbers, as they can significantly influence the outcome of an economic impact study. It is recommended that each study should also have transparent checks in place, regarding the key calculation figures, to ensure that less scrupulous researchers are not as easily able to succumb to the pressure event sponsors might impose to produce inflated impact values.
- Full Text:
- Date Issued: 2011
Considerations on the economic impact of the 2010 FIFA World Cup on South Africa
- Authors: Menezes, Mathew Gomes
- Date: 2010
- Subjects: World Cup (Soccer) (2010) -- Economic aspects Sports -- Economic aspects -- South Africa Soccer -- Economic aspects -- South Africa
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: vital:963 , http://hdl.handle.net/10962/d1002697
- Description: Mega-events are associated with significant positive implications such as enhanced international exposure of the host, improved infrastructure, increased tourist numbers, higher employment levels and tax revenues, greater feelings of patriotism among host region residents and integration of the host into the international community. Supporters of events have claimed that the occasions stimulate prominent economic gains for the host region. The economic and tourism growth that occurred in Barcelona following the 1992 Olympic Games is erroneously cited by proponents of hosting as an example of the potential benefits that an event can derive on the host. Those Games were not the sole driver of growth in the region. An analysis of previous mega-events, demonstrated that net benefits were not a necessary consequence of hosting. Comparison of pre-event estimates of the economic impact and their actual effects are universally divergent. The observation was validated by the consensus academic opinion that economic impact studies systematically overstate the benefits of hosting, and underestimate the costs. Further, different forward-looking studies of the same event, calculate vastly different predictions. The tools for calculating the economic impact, specifically Input-Output Analysis and Computable General Equilibrium, do not provide useful predictions given their dependence on the inaccurate data. With 2010 cost data having continually increased since 2003, determining the appropriate inputs to an I-O or CGE is problematic. It was identified that the weight given to the multiplier effect was also a factor in the amplification of the expected benefits. Given the poor data sets available as inputs to I-O and CGE models, the study concentrated on conducting a comprehensive Cost-Benefit Analysis of the determinants of the economic impact of the 2010 World Cup based on the premise that the identification of the relative costs and benefits of staging the event was regarded as a greater contribution to the body of knowledge on the topic. It can be expected that there will not be significant short-term economic gains; this study predicted a net cost of R8.4bn, which is marginally offset by short-term net intangible benefits. The short-term economic consequences of the 2010 World Cup are expected to be overshadowed by the long-term effects on revenues within the tourism industry. The image implication of hosting 2010 is the most salient factor in considering the economic impact of 2010, as an alteration in the national image can have long-term effects on FDI and tourism. It is however not a certainty that the international exposure that South Africa receives will be beneficial, in the instance that the World Cup is characterised by poor organisational measures or crime. The net impact of hosting is expected to be a function of the long-term benefits, which can be expected to exceed the short-terms costs, and derive a cumulative net benefit from staging 2010. The World Cup is however unlikely to stimulate the economic growth rate above levels that would have occurred had the event not been held in South Africa.
- Full Text:
- Date Issued: 2010
- Authors: Menezes, Mathew Gomes
- Date: 2010
- Subjects: World Cup (Soccer) (2010) -- Economic aspects Sports -- Economic aspects -- South Africa Soccer -- Economic aspects -- South Africa
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: vital:963 , http://hdl.handle.net/10962/d1002697
- Description: Mega-events are associated with significant positive implications such as enhanced international exposure of the host, improved infrastructure, increased tourist numbers, higher employment levels and tax revenues, greater feelings of patriotism among host region residents and integration of the host into the international community. Supporters of events have claimed that the occasions stimulate prominent economic gains for the host region. The economic and tourism growth that occurred in Barcelona following the 1992 Olympic Games is erroneously cited by proponents of hosting as an example of the potential benefits that an event can derive on the host. Those Games were not the sole driver of growth in the region. An analysis of previous mega-events, demonstrated that net benefits were not a necessary consequence of hosting. Comparison of pre-event estimates of the economic impact and their actual effects are universally divergent. The observation was validated by the consensus academic opinion that economic impact studies systematically overstate the benefits of hosting, and underestimate the costs. Further, different forward-looking studies of the same event, calculate vastly different predictions. The tools for calculating the economic impact, specifically Input-Output Analysis and Computable General Equilibrium, do not provide useful predictions given their dependence on the inaccurate data. With 2010 cost data having continually increased since 2003, determining the appropriate inputs to an I-O or CGE is problematic. It was identified that the weight given to the multiplier effect was also a factor in the amplification of the expected benefits. Given the poor data sets available as inputs to I-O and CGE models, the study concentrated on conducting a comprehensive Cost-Benefit Analysis of the determinants of the economic impact of the 2010 World Cup based on the premise that the identification of the relative costs and benefits of staging the event was regarded as a greater contribution to the body of knowledge on the topic. It can be expected that there will not be significant short-term economic gains; this study predicted a net cost of R8.4bn, which is marginally offset by short-term net intangible benefits. The short-term economic consequences of the 2010 World Cup are expected to be overshadowed by the long-term effects on revenues within the tourism industry. The image implication of hosting 2010 is the most salient factor in considering the economic impact of 2010, as an alteration in the national image can have long-term effects on FDI and tourism. It is however not a certainty that the international exposure that South Africa receives will be beneficial, in the instance that the World Cup is characterised by poor organisational measures or crime. The net impact of hosting is expected to be a function of the long-term benefits, which can be expected to exceed the short-terms costs, and derive a cumulative net benefit from staging 2010. The World Cup is however unlikely to stimulate the economic growth rate above levels that would have occurred had the event not been held in South Africa.
- Full Text:
- Date Issued: 2010
Preservation or exploitation? : a study of the development of the mining rights legislation on the Witwatersrand goldfields from 1886 to 2008
- Authors: Stott, Joan
- Date: 2009
- Subjects: Ostrom, Elinor Chamber of Mines of South Africa Gold mines and mining -- South Africa -- Witwatersrand -- History Mineral industries -- Finance -- South Africa Mining law -- South Africa
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: vital:988 , http://hdl.handle.net/10962/d1002723
- Description: Elinor Ostrom (2005: 238) assumes that in understanding the make up and behaviour of institutional systems governing natural resources: “Resource users are explicitly thought of as rational egoists who plunder local resources so as to maximise their own short-term benefits. Government officials are implicitly depicted, on the other hand, as seeking, the more general public interest, having the relevant information at hand and the capability of designing optimal policies.” This thesis examines the validity of this assumption through an historical analysis of the deep-level gold mining industry of the Witwatersrand, South Africa. The main focus of the assessment is on the institutions of ownership – that is, the development of mining rights and title legislation between 1886 and 2008. The study looks at the legislations’ transformation and implementation from the perspective of the gold mining industry – made up of the mining finance houses and the Chamber of Mines of South Africa – and that of the state. The transformation of the mining industry’s institutional framework was both a choice by government as well as that of the firms in the mining industry. The theoretical framework is constructed from four areas of economic thought. These include: the neoclassical and Keynesian schools of macroeconomic thought; industrial organisation and its relevance to the relationship between firms and the market; institutional and new institutional economics; and finally property rights. The determinants of policy design and the impact of such design on firms and industry is examined. The development, implementation and use of the aforementioned legislation is examined from two perspectives, namely, that of preserver or exploiter. Throughout the history of this prominent South African industry, the motivation for action from the industry or government has oscillated between the two extremes of preserver or exploiter over the time period examined. The conclusion is drawn on an overall and broad focus of actions – with a strong focus on the most recent developments in mining legislation – post-1992.
- Full Text:
- Date Issued: 2009
- Authors: Stott, Joan
- Date: 2009
- Subjects: Ostrom, Elinor Chamber of Mines of South Africa Gold mines and mining -- South Africa -- Witwatersrand -- History Mineral industries -- Finance -- South Africa Mining law -- South Africa
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: vital:988 , http://hdl.handle.net/10962/d1002723
- Description: Elinor Ostrom (2005: 238) assumes that in understanding the make up and behaviour of institutional systems governing natural resources: “Resource users are explicitly thought of as rational egoists who plunder local resources so as to maximise their own short-term benefits. Government officials are implicitly depicted, on the other hand, as seeking, the more general public interest, having the relevant information at hand and the capability of designing optimal policies.” This thesis examines the validity of this assumption through an historical analysis of the deep-level gold mining industry of the Witwatersrand, South Africa. The main focus of the assessment is on the institutions of ownership – that is, the development of mining rights and title legislation between 1886 and 2008. The study looks at the legislations’ transformation and implementation from the perspective of the gold mining industry – made up of the mining finance houses and the Chamber of Mines of South Africa – and that of the state. The transformation of the mining industry’s institutional framework was both a choice by government as well as that of the firms in the mining industry. The theoretical framework is constructed from four areas of economic thought. These include: the neoclassical and Keynesian schools of macroeconomic thought; industrial organisation and its relevance to the relationship between firms and the market; institutional and new institutional economics; and finally property rights. The determinants of policy design and the impact of such design on firms and industry is examined. The development, implementation and use of the aforementioned legislation is examined from two perspectives, namely, that of preserver or exploiter. Throughout the history of this prominent South African industry, the motivation for action from the industry or government has oscillated between the two extremes of preserver or exploiter over the time period examined. The conclusion is drawn on an overall and broad focus of actions – with a strong focus on the most recent developments in mining legislation – post-1992.
- Full Text:
- Date Issued: 2009
The labour market drop-out rate : a new approach to estimating the returns to government investment in higher education : the case for marine science in South Africa
- Authors: Grootes, Pieter Brian
- Date: 2005
- Subjects: Labor market Marine scientists -- South Africa Education -- Economic aspects -- South Africa Higher education and state -- South Africa Education -- Social aspects Human capital -- South Africa Education, Higher -- Economic aspects -- South Africa
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: vital:950 , http://hdl.handle.net/10962/d1002684
- Description: The private and social returns to education literature share the same conclusion: that education is beneficial for both the individual and society. However, the theoretical underpinnings are flawed as the literature does not account for the main feature that leads to the acquisition of education: the private demand for education. An understanding of the factors that motivate the individual to invest in education would lead to a deeper insight as to why both private and social returns to education exist, and would provide a clearer framework on which to base the government funding of education. This thesis provides a first attempt at filling this gap by introducing a method of estimating the returns to government investment in education, which is labelled the ‘labour market drop-out rate approach’. The approach focuses on the social return to education, not in terms of graduate earnings, but in terms of the interaction of the graduate with the economy. The approach introduces a measure of expertise utilisation, based on the premise that there is no social return to an individual acquiring education if he or she does not utilise the acquired knowledge base on entering the labour market. The approach is tested using the labour market for marine scientists in South Africa as a case study. In this case the private demand for education is found to be heavily influenced by the provision of student bursaries from the National Research Foundation, with a resulting estimate of the social return to a degree in marine science being a mere 20% to 25%. Owing to this, a new approach to government investment in marine science is introduced, that of graduate contribution schemes. Of broader significance is the ease of application of this approach, it may be adopted to analyse any funding programme in which a government may decide to invest. As such, the labour market drop-out rate provides an extension to the returns to education literature through its theoretical dealings of the private demand for education, as well as a practical tool which government agencies can use to evaluate the efficacy of any government funding of education.
- Full Text:
- Date Issued: 2005
- Authors: Grootes, Pieter Brian
- Date: 2005
- Subjects: Labor market Marine scientists -- South Africa Education -- Economic aspects -- South Africa Higher education and state -- South Africa Education -- Social aspects Human capital -- South Africa Education, Higher -- Economic aspects -- South Africa
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: vital:950 , http://hdl.handle.net/10962/d1002684
- Description: The private and social returns to education literature share the same conclusion: that education is beneficial for both the individual and society. However, the theoretical underpinnings are flawed as the literature does not account for the main feature that leads to the acquisition of education: the private demand for education. An understanding of the factors that motivate the individual to invest in education would lead to a deeper insight as to why both private and social returns to education exist, and would provide a clearer framework on which to base the government funding of education. This thesis provides a first attempt at filling this gap by introducing a method of estimating the returns to government investment in education, which is labelled the ‘labour market drop-out rate approach’. The approach focuses on the social return to education, not in terms of graduate earnings, but in terms of the interaction of the graduate with the economy. The approach introduces a measure of expertise utilisation, based on the premise that there is no social return to an individual acquiring education if he or she does not utilise the acquired knowledge base on entering the labour market. The approach is tested using the labour market for marine scientists in South Africa as a case study. In this case the private demand for education is found to be heavily influenced by the provision of student bursaries from the National Research Foundation, with a resulting estimate of the social return to a degree in marine science being a mere 20% to 25%. Owing to this, a new approach to government investment in marine science is introduced, that of graduate contribution schemes. Of broader significance is the ease of application of this approach, it may be adopted to analyse any funding programme in which a government may decide to invest. As such, the labour market drop-out rate provides an extension to the returns to education literature through its theoretical dealings of the private demand for education, as well as a practical tool which government agencies can use to evaluate the efficacy of any government funding of education.
- Full Text:
- Date Issued: 2005
Examining the feasibility of introducing environmental surcharges to finance local coastal management initiatives in South Africa : a case study in Plettenberg Bay
- Authors: Mollatt, David G R
- Date: 2004
- Subjects: Marine resources -- South Africa Marine resources conservation -- South Africa Coastal zone management -- South Africa Marine parks and reserves -- Management--South Africa Tourism--South Africa -- Taxation Tourism -- South Africa -- Economic aspects
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: vital:999 , http://hdl.handle.net/10962/d1002734
- Description: The management of coastal resources in South Africa has come under review as a result of the degradation of environmental resources along the coast. The challenge being faced by resource managers is to achieve economic growth while sustaining South Africa’s coastal resource base (Nobel, 2000). The South African government (RSA, 2000) has developed a coastal management strategy to meet this challenge: The strategy involves the inclusion of all stakeholders in the formation of policy regarding the management of coastal resources, in a more integrated approach to coastal management. To effectively achieve this stakeholder inclusion, it has become necessary to decentralize the political, administrative and fiscal authority to conduct coastal management functions. With regard to the need for fiscal decentralisation this thesis considers the possibility of implementing localised environmental surcharges to finance coastal management initiatives. The ability of the White Paper for Sustainable Coastal Development (RSA, 2000) to provide theformal institutional structure necessary for the introduction of environmental surcharges is firstconsidered. It is shown that the decentralised management strategy has the potential to create a management style that is transparent and accountability orientated. In addition to this the style is capable of adapting to dynamic local coastal conditions and is therefore an appropriate direction in which to steer coastal management in South Africa. The effectiveness of coastal co-management as an informal institutional arrangement is then examined. Provided that local Coastal Management Fora are created to include all relevant stakeholders and that a source of long term financing is secured co-management has the potential to create the conditions necessary for effective coastal management. With regard to a source of long term financing, local environmental surcharges to finance coastal management initiatives are considered. The public’s willingness to contribute to such a surcharge is analysed in the context of Plettenberg Bay by probing their willingness to pay (WTP) for a Bay Management Plan. A survey instrument is developed to measure the public’s WTP. The design of the instrument is based on the Contingent Valuation (CV) method that is used to analyse the nonmarket benefits that environmental resources (such as Plettenberg Bay) provide the public. It is found that the resident population is willing to pay R15 per month toward a Bay Management Plan whilst domestic and foreign tourists respectively are willing to pay R6 and R22 daily. The aggregation of these WTP estimates yields a total passive use value of between R15 397 900 – R20330 500 annually. This nuclear value of the Bay should be included in the formation of local coastal management policy and provides guidance for the introduction of a local environmental surcharge. A budget for a Bay Management Plan is proposed and a progressive surcharge based on municipal property value is set. To finance the local residents’ share of the budget, a monthly surcharge of R1 would be required of the average valued property. To calculate the domestic and foreign tourist contribution to the budget a schedule of accommodation offering property will be required. However, to finance the entire budget a residential surcharge of approximately R10 would be required of the average valued property. This figure is well below the average resident population WTP of R15, highlighting the fact that an environmental surcharge in Plettenberg Bay is indeed feasible. The difference in reported WTP and the contribution required to finance the Bay Management Plan also highlights that there is scope for experimentation in the introduction of such a surcharge.
- Full Text:
- Date Issued: 2004
- Authors: Mollatt, David G R
- Date: 2004
- Subjects: Marine resources -- South Africa Marine resources conservation -- South Africa Coastal zone management -- South Africa Marine parks and reserves -- Management--South Africa Tourism--South Africa -- Taxation Tourism -- South Africa -- Economic aspects
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: vital:999 , http://hdl.handle.net/10962/d1002734
- Description: The management of coastal resources in South Africa has come under review as a result of the degradation of environmental resources along the coast. The challenge being faced by resource managers is to achieve economic growth while sustaining South Africa’s coastal resource base (Nobel, 2000). The South African government (RSA, 2000) has developed a coastal management strategy to meet this challenge: The strategy involves the inclusion of all stakeholders in the formation of policy regarding the management of coastal resources, in a more integrated approach to coastal management. To effectively achieve this stakeholder inclusion, it has become necessary to decentralize the political, administrative and fiscal authority to conduct coastal management functions. With regard to the need for fiscal decentralisation this thesis considers the possibility of implementing localised environmental surcharges to finance coastal management initiatives. The ability of the White Paper for Sustainable Coastal Development (RSA, 2000) to provide theformal institutional structure necessary for the introduction of environmental surcharges is firstconsidered. It is shown that the decentralised management strategy has the potential to create a management style that is transparent and accountability orientated. In addition to this the style is capable of adapting to dynamic local coastal conditions and is therefore an appropriate direction in which to steer coastal management in South Africa. The effectiveness of coastal co-management as an informal institutional arrangement is then examined. Provided that local Coastal Management Fora are created to include all relevant stakeholders and that a source of long term financing is secured co-management has the potential to create the conditions necessary for effective coastal management. With regard to a source of long term financing, local environmental surcharges to finance coastal management initiatives are considered. The public’s willingness to contribute to such a surcharge is analysed in the context of Plettenberg Bay by probing their willingness to pay (WTP) for a Bay Management Plan. A survey instrument is developed to measure the public’s WTP. The design of the instrument is based on the Contingent Valuation (CV) method that is used to analyse the nonmarket benefits that environmental resources (such as Plettenberg Bay) provide the public. It is found that the resident population is willing to pay R15 per month toward a Bay Management Plan whilst domestic and foreign tourists respectively are willing to pay R6 and R22 daily. The aggregation of these WTP estimates yields a total passive use value of between R15 397 900 – R20330 500 annually. This nuclear value of the Bay should be included in the formation of local coastal management policy and provides guidance for the introduction of a local environmental surcharge. A budget for a Bay Management Plan is proposed and a progressive surcharge based on municipal property value is set. To finance the local residents’ share of the budget, a monthly surcharge of R1 would be required of the average valued property. To calculate the domestic and foreign tourist contribution to the budget a schedule of accommodation offering property will be required. However, to finance the entire budget a residential surcharge of approximately R10 would be required of the average valued property. This figure is well below the average resident population WTP of R15, highlighting the fact that an environmental surcharge in Plettenberg Bay is indeed feasible. The difference in reported WTP and the contribution required to finance the Bay Management Plan also highlights that there is scope for experimentation in the introduction of such a surcharge.
- Full Text:
- Date Issued: 2004
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