Lowering of shallow groundwater levels in agricultural areas with ecological value leads to desiccation of ecosystems. The aim of this paper is to develop a model to study the trade-offs between the agricultural production value and the monetary value of the ecological benefits of agricultural nature management as a result of changes in shallow groundwater levels. It shows that socially optimal groundwater levels depend on: (1) the agricultural production value; (2) the monetary value of nature; (3) the soil type and vegetation; and (4) the relative share of agricultural area with ecological value in total agricultural area.
Hellegers, P. J. G. J., Oltmer, K., van Ierland, E. C., & van Staalduinen, L. C. (2001). An Economic Analysis of Shallow Groundwater Management for Nature Conservation and Agricultural Production. Journal of Environmental Planning and Management, 44(4), 545-559. https://doi.org/10.1080/09640560120060957