Water demand management is a key focus area for most water managers and even more so in developing countries since improved access to water is important to the poor. Different policies have been introduced to ensure a water management system th at cares for the poor, among them the Increasing Block Tariff (IBT) structure. Studies demonstrate that it is very important to know the shape of the demand curve when deciding on the IBT structure. This paper adds to the understanding of the factors that influence water consumption. The focus is on how water demand patterns vary with the level of income among urban dwellers. The results support the hypothesis that pricing is an ineffective measure to manage water consumption among the poor, while it is relatively more effective for the richest group. Therefore, redistribution using water pricing policy will hardly work. Copyright (c) 2006 The Authors. Journal compilation (c) 2006 Economic Society of South Africa.
The deteriorating performance of first-year economics students has become a concern at many South African universities. Addressing the issue requires an understanding of the factors influencing students' success. Studies analysing academic performance use the education production function approach. This approach identifies inputs that are crucial to learning and to achieving certain outputs. Factors that have been investigated in other studies include the impact of lecture attendance on performance, school-leaving exam (matriculation) results, particularly performance in mathematics, and the gender and age of students. Copyright (c) 2009 The Authors. Journal compilation (c) 2009 Economic Society of South Africa.
Background: The aim of many public policies is to change behaviour. Governments tend to rely on regulations, taxes and subsidies to effect such change. These measures, which affect agents' economic incentives, have a mixed record. A key insight of the New Institutional Economics is that the efficacy of such formal institutions depends on the strength of their enforcement and the extent to which they are compatible with prevailing informal institutions.Aim: This article uses the road safety situation in South Africa as a case study to explore aspects of the relationships among formal institutions, law enforcement and informal institutions.Setting: South Africa has a strong suite of road safety laws but poor road safety outcomes.
Methods:The article draws on ideas about the relationships between formal institutions, law enforcement and informal institutions to undertake a case study of the road safety situation in South Africa.
Results:The article argues that improved law enforcement cannot fully solve the problem; complementary changes to the informal institutions shaping the behaviour of road users are essential.
Conclusion:Institutional economists have to take a greater interest in the insights of research in behavioural economics, behavioural and cognitive science and other disciplines in order to provide useful advice in settings where such change is an important policy objective.
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