An Analysis of the Value of Additional Information Provided by Water Quality Measurement Network

Abstract

European Community policy concerning water is placing increasing demands on the acquisition of information about the quality of aquatic environments. The cost of this information has led to a reflection on the rationalization of monitoring networks and, therefore, on the economic value of information produced by these networks. The aim of this article is to contribute to this reflection. To do so, we used the Bayesian framework to define the value of additional information in relation to the following three parameters: initial assumptions (prior probabilities) on the states of nature, costs linked to a poor decision (error costs) and accuracy of additional information. We then analyzed the impact of these parameters on this value, particularly the combined role of prior probabilities and error costs that increased or decreased the value of information depending on the initial uncertainty level. We then illustrated the results using a case study of a stream in the Bas-Rhin department in France.