Irrigation subsidies threaten rural livelihoods as water scarcity forces tough trade-offs in South Africa.
In South Africa, water management is under pressure due to factors like climate change and rapid urbanization. This study looked at the effects of different policies on water use, farming, and the economy. They found that setting limits on how much water crops can use affects which crops are grown and how much. When water is traded between farms and cities, prices rise for farmers but benefits increase for city dwellers. Allowing more flexibility in water use in farming helps grow high-value crops and create more jobs. However, balancing economic gains with higher water prices remains a challenge, especially when deciding whether to subsidize water for farms.