Renewable energy and local development: Seven lessons from the mining industry

Having long depended on fossil fuels for energy generation, South Africa is now investing in renewable energy. Like its mining operations, its renewable energy plants will have local implications. Renewable energy companies are therefore required by government to engage with communities to contribute to socio-economic development. We present seven lessons we believe the renewable energy sector can learn from the mining industry. We argue that the new industry must: manage social disruption, understand community complexities, create responsive institutions and the capacity to support industry practice, employ trained community practitioners, be clear about the aims of local development, encourage economic diversification in remote areas and, importantly, in view of problems caused by downscaling in the mining industry, plan for the possible closure of projects. Renewable energy projects could then serve and shape local development.     

European gas imports from North Africa

The uprising and military confrontation in Libya that began in February 2011 has led to a disruption of the country’s gas exports to Europe. An analysis of how Europe has compensated for these missing gas volumes shows that the disruption has not affected security of supply. However, this situation would change if the North African uprising were to spread to Algeria.     

Who received what,where in the Free State? An assessment of post-apartheid housing delivery and policy (1994–98)

This article reflects on the differences and similarities between the housing policies of the World Bank and that of South Africa. It also focuses on the application of South African policy in the Free State and especially pays attention to who the end-beneficiaries are, what the end-product is and what the regional and locational priorities of housing investment are. Furthermore, this article assesses the spatial distribution of housing subsidies, the income levels of end-beneficiaries, and the type of end product that has been delivered. Among other things, it concludes that cities in the Free State have been neglected in terms of housing investment, that the majority of end-beneficiaries fall in the lowest income category, and that double subsidisation has been a common phenomenon in the Free State. A number of critical reflections are also made in terms of future housing policy.     

Erdgas für Europa: Die ewiGAS<Subscript>2008</Subscript> Prognose

Europe’s growing dependency on imports of natural gas poses two major questions: where will future supply come from and how it will get to the major consumption areas in Western Europe. Applying the global gas supply model MAGELAN and the European dispatch model TIGER, the Institute of Energy Economics at the University of Cologne (EWI) compiled its ewiGAS₂₀₀₈ forecast to answer these questions. The main results of the analysis of the future supply situation of Europe show that natural gas imports from Russia and the Middle East will see the largest increases. Liquefied Natural Gas (LNG) will gain importance globally, but to a much smaller extent in Europe than in other markets of the world. As the majority of import capacity increases are projected to take place on pipeline routes from North Africa and Iran, LNG imports to Europe will only grow relatively slower than total imports. Sensitivity analyses show that political or technical restrictions on additional exports from Russia and/or the Middle East do not endanger gas supply to Europe in the long-term, although they may significantly raise supply costs in extreme cases.     

EDUCATION,WORK, AND CRIME: A HUMAN CAPITAL APPROACH*

This article develops a model of crime in which human capital increases the opportunity cost of crime from foregone work and expected costs associated with incarceration. Older, more intelligent, and more educated adults should commit fewer street (unskilled) crimes. White collar crimes decline less (or increase) with age and education. Predictions for age–crime and education–crime relationships receive broad empirical support in self‐report data from the National Longitudinal Survey of Youth and arrest data from the Uniform Crime Reports. The effects of education, training, and wage subsidies, as well as enforcement policies on criminal behavior are discussed.     

The working for water programme: Evolution of a payments for ecosystem services mechanism that addresses both poverty and ecosystem service delivery in South Africa

A payments for ecosystem services (PES) system came about in South Africa with the establishment of the government-funded Working for Water (WfW) programme that clears mountain catchments and riparian zones of invasive alien plants to restore natural fire regimes, the productive potential of land, biodiversity, and hydrological functioning. The success of the programme is largely attributed to it being mainly funded as a poverty-relief initiative, although water users also contribute through their water fees. Nevertheless, as the hydrological benefits have become apparent, water utilities and municipalities have begun to contract WfW to restore catchments that affect their water supplies. This emerging PES system differs from others in that the service providers are previously unemployed individuals that tender for contracts to restore public or private lands, rather than the landowners themselves. The model has since expanded into other types of ecosystem restoration and these have the potential to merge into a general programme of ecosystem service provision within a broader public works programme. There is a strong case for concentrating on the most valuable services provided by ecosystems, such as water supply, carbon sequestration, and fire protection, and using these as ‘umbrella services’ to achieve a range of conservation goals. The future prospects for expansion of PES for hydrological services are further strengthened by the legal requirement that Catchment Management Agencies be established. These authorities will have an incentive to purchase hydrological services through organisations such as WfW so as to be able to supply more water to their users.     

Informal settlement upgrading,assets and poverty alleviation: Evidence from longitudinal research in South Africa

This paper investigates the relationship between housing as an asset and the accumulation of other assets. Using data from a longitudinal research project stretching over nearly 25 years, we have found that besides actual income, there have also been improvements in self-perceived wealth ranking, asset holding, housing size, infrastructure access and human capital. Not all households have however benefited or been found to be better off. We have found that those households who had settled in Freedom Square after 1994 were indeed better off than the earlier settlers. Asset building is a slow process, one driven by stability (accessing urban land and secure tenure), finding an address, accessing education and finding work or remaining employed (though not necessarily in this particular sequence). Contrary to what the Department of Human Settlements suggests, we have found little evidence that informal settlement dwellers build assets by means of the secondary housing market.     

Post‐secondary attendance by parental income in the U.S. and Canada: Do financial aid policies explain the differences?

We examine the extent to which tuition and needs‐based aid policies explain important differences in the relationship between family income and post‐secondary attendance relationships between Canada and the U.S. Using data from recent cohorts, we estimate substantially smaller attendance gaps by parental income in Canada relative to the U.S., even after controlling for family background, cognitive achievement, and local‐residence fixed effects. We next document that U.S. public tuition and financial aid policies are actually more generous to low‐income youth than are Canadian policies. Equalizing these policies across Canada and the U.S. would likely lead to a greater difference in income‐attendance gradients.