The global effort toward sustainable development has initiated a transition in water management. Water utility companies use water-pricing policies as an instrument for controlling residential water demand. To support policy makers in their decisions, the authors have developed DAWN, a hybrid model for evaluating water-pricing policies. DAWN integrates an agent-based social model for the consumer with conventional econometric models and simulates the residential water demand-supply chain, enabling the evaluation of different scenarios for policy making. An agent community is assigned to behave as water consumers, while econometric and social models are incorporated into them for estimating water consumption. DAWN’s main advantage is that it supports social interaction between consumers, through an influence diffusion mechanism, implemented via inter-agent communication. Parameters affecting water consumption and associated with consumers’ social behavior can be simulated with DAWN. Real-world results of DAWN’s application for the evaluation of five water-pricing policies in Thessaloniki, Greece, are presented.
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