Technology

We estimate and compare the effects of small and large irrigation dams on cropland productivity in South Africa (SA). To this end we construct a panel data set of SA river basins. The econometric analysis reveals that while large dams increase cropland productivity downstream, they have a negative effect on cropland within the vicinity. However, their existence can enhance the relatively small positive impact of local small dams. While a cost-benefit analysis of irrigation benefits does indeed show that small dams per se may be more viable than large ones, large dams can play a potentially important role within a system of both types. JEL Classification: O20, Q1