Evaluating the Effects of Organic vs. Conventional Farming on Aquifer Water Quality

Abstract

This study analyzes water quality dynamics and aquifer recharge through irrigated agriculture, contributing to the literature on Managed Aquifer Recharge (MAR) amidst growing water scarcity. We develop two optimal control models-- a linear and a non-linear extension of (Martin and Stahn, 2013) --that incorporate the impact of fertilizers on aquifer water quality, distinguishing between organic and conventional farming practices. The linear model applies a constant rebate mechanism, whereas the non-linear model employs a concave rebate scheme. Our results show that, depending on climate change scenarios, fertilizer-induced food price discounts, and pollution levels, a socially optimal equilibrium in fertilizer use can be attained. Policy implications are discussed, emphasizing the trade-off between environmental sustainability and social welfare.