Assessing the impact of water demand management in water allocation

A fair water allocation model is utilized to assess the impact on stakeholders of a water demand management plan. Moreover, an asymmetric Nash bargaining model is employed to analyze sharing of the additional net benefits gained among stakeholders. The results indicate that the performance of a water system with water demand management strategies is better in terms of lower water shortage ratios and greater economic benefits. Moreover, the environmental requirements could be better met when water demand management is implemented. The additional benefits gained can be shared by stakeholders through a bargaining process. The results of the asymmetric Nash bargaining analysis are presented.