Behavioral response to contamination risk information in a spatially explicit groundwater environment: Experimental evidence

Abstract

AbstractThis paper assesses the effectiveness of aquifer monitoring information in achieving more sustainable use of a groundwater resource in the absence of management policy. Groundwater user behavior in the face of an irreversible contamination threat is studied by applying methods of experimental economics to scenarios that combine a physics‐based, spatially explicit, numerical groundwater model with different representations of information about an aquifer and its risk of contamination. The results suggest that the threat of catastrophic contamination affects pumping decisions: pumping is significantly reduced in experiments where contamination is possible compared to those where pumping cost is the only factor discouraging groundwater use. The level of information about the state of the aquifer also affects extraction behavior. Pumping rates differ when information that synthesizes data on aquifer conditions (a “risk gauge”) is provided, despite invariant underlying economic incentives, and this result does not depend on whether the risk information is location‐specific or from a whole aquifer perspective. Interestingly, users increase pumping when the risk gauge signals good aquifer status compared to a no‐gauge treatment. When the gauge suggests impending contamination, however, pumping declines significantly, resulting in a lower probability of contamination. The study suggests that providing relatively simple aquifer condition guidance derived from monitoring data can lead to more sustainable use of groundwater resources.