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Estimating the Marginal Social Value of Agriculturally Driven Nitrate Concentrations in an Aquifer: A Combined Theoretical-Applied Approach

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  • Cyril Bourgeois

    (Economie Publique, AgroParisTech, INRA, Université Paris-Saclay, France2GEOSCIENCES, MinesParisTech, Paris, France3CIRED, UMR 8568, Nogent-sur-Marne, France)

  • Pierre-Alain Jayet

    (UMR Economie Publique, AgroParisTech, INRA Université Paris-Saclay, France)

  • Florence Habets

    (UMR 7619 METIS, CNRS, UPMC, Paris, France)

  • Pascal Viennot

    (GEOSCIENCES, MinesParisTech, Paris, France)

Abstract

We combine a theoretical model and a quantitative modeling chain based on a bio-economic model and a hydrological model in order to assess the marginal damage related to the nitrate concentration in an aquifer. The fundamental concept is to take the steady state level resulting from a social planner’s optimization program as the target level of nitrate concentration. The interest of doing this is three-fold: (i) we characterize the social value of damage related to the targeted nitrate concentration; which (ii) leads us to design the optimal path consistent with the target; and (iii) we can in turn assess welfare losses arising when the tax path deviates from the optimal one.

Suggested Citation

  • Cyril Bourgeois & Pierre-Alain Jayet & Florence Habets & Pascal Viennot, 2018. "Estimating the Marginal Social Value of Agriculturally Driven Nitrate Concentrations in an Aquifer: A Combined Theoretical-Applied Approach," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 4(01), pages 1-30, January.
    • Handle: RePEc:wsi:wepxxx:v:04:y:2018:i:01:n:s2382624x16500211
    DOI: 10.1142/S2382624X16500211
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