We consider an exogenous and reversible shock to a groundwater resource, namely a decrease in the recharge rate of the aquifer. We compare optimal extraction paths and the social costs of optimal adaptation in two cases: under certainty, i.e. when the date of occurrence of the shock is known, and under uncertainty, when the date of occurrence of the shock is a random variable. We show that an increase in uncertainty leads to a decrease in precautionary behavior in the short run and to an increase in precautionary behavior in the long run. We apply our model to the particular case of the Western la Mancha aquifer in Spain. We show that, in this context, it is advantageous for the water agency to acquire information on the date of the shock, especially for high-intensity and intermediate-risk events.JEL classi cation: C61,Q25.

Few studies have addressed the topic of farmers' adaptation to climate change from a multidisciplinary perspective, because of the diculty in assessing their impacts. In view of the growing concern in the agricultural sector on this issue, we analyzed farmlevel adaptation through arable land-use changes in the specic case of the Loam region in Belgium. With this aim, we used an agro-economic model which considered 20-year series of current and projected simulated yields with and without considering additional farming practices to reduce crop stress, such as irrigation and soil and water conservation techniques. Agronomic results show that climate change will negatively aect summer crop yields, particularly sugar beet and potatoes. However, we also show that adaptation to climate change through land-use changes can compensate for crop yield losses and lead to utility gains. These are obtained by reducing the share of land allocated to summer crops and barley and by increasing the surface allocated to less vulnerable crops such as winter wheat. Finally, irrigation practices would not

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In view of the current nuclear power debate in Belgium, we analyze how uncertainty about a nuclear phase-out, coupled with the implementation of renewable energy subsidies and nuclear taxes, affects investment capacity and productivity decisions by Belgian electricity suppliers. To achieve this goal, considering the key characteristics of the Belgian market, we build a Stackelberg closed-loop (two-stage) equilibrium model in which investment decisions are made in a first stage under uncertainty regarding a nuclear phase-out, and productivity decisions are subsequently made in a second stage in a certainty environment. Our analysis indicates that, regardless of subsidies, an increase in the probability of nuclear license extension results in lower levels of investment-primarily in renewable energy-, lower total production and a higher electricity price. We also show that the implementation of renewable energy subsidies reduces the effect of an increase in probability of nuclear license extension on producer's decisions regarding expanded capacity and on total profits in the market.