Agent-Based Modeling Approach to Investigating the Impact of Water Demand Management

Abstract

This paper proposes an agent-based modeling approach to assess water users’ behavior for water demand management (WDM) in a river basin. In this procedure, each agent controls its own strategy regarding whether to conserve or consume more water in order to achieve a better economic return based on an initial allocation scheme. The effects of agents’ behaviors on their own economic returns and the aggregated impacts of individual behavior on the system are investigated. A positive incentive given to water conservers encourages agents to implement WDM strategies, which in turn improve water use efficiency. A case study using this new agent-based approach reveals that agricultural users are the main contributors to water conservation. Compensation given to water conservers more than covers the benefit loss from lower water consumption, whereas other users gain benefits from the use of the conserved water. The results also indicate that the implementation of WDM strategies is beneficial for the overall system from both economic and ecological perspectives.