A dynamic model of irrigation and land-use choice: an application to the Beauce aquifer in France
Résumé
This paper models land-use and irrigation water choices in a dynamic hydro-agro- economic model. We first confirm that the dynamic model leads to different results than a static model without pumping costs. We then apply our model to the Beauce area, which is one of the most important agricultural production areas in Europe. We show that dry wheather conditions lead to both more important decreases in water- table levels and losses in gross added value for the farmers. Next, we compare the performance of two regulatory policies: water restricions (quotas), which are currently in place, and increases in pumping costs (taxes), which are considered as an alterna- tive. We show that restrictions outperform taxes with respect to hydrological criteria, while farmers' gross value added are comparable. Although they are relatively more performant than taxes, restrictions lead to important economic losses for the farmers.
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