Economics of climate change adaptation: a case study of Ceres – South Africa

The aim of this study is to develop an integrated model that can simulate the impact of climate change on farm structure and adaptation thereof. The future sustainability of the agricultural sector relies on the type of adaptation strategy put in place for farmers to cope with the projected impacts of climate change. The Ceres Dynamic Integrated Model (CDIM) was developed to evaluate different adaptation strategies, results show that it is unlikely that high water tariffs will reduce the level of water used for production. Depending on the availability of funds to make farm dams available for farmers, access to farm dam capacity and winter water allocations as well as increasing water use efficiency are potential adaptation options for the farmers. Improved water management practices that increase the productivity of irrigation water use may provide a significant adaptation potential under future climate