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Agent-based modeling to assess the effects of time-of-use water tariffs on social equity

Author

Listed:
  • Karrenberg, Cade
  • Edwards, Eric
  • Berglund, Emily Zechman

Abstract

Time-of-use (TOU) tariffs charge higher prices for water used during designated peak periods, encouraging users to shift their water use to off-peak periods. Research in electricity markets has shown that TOU tariffs can have adverse effects on households with low incomes or who lack access to technology, raising equity concerns. This research assesses the differential impact of TOU tariffs on heterogeneous water users using an agent-based modeling (ABM) approach. The ABM is applied to a case study to simulate the response of a community of water users to TOU tariffs and assess the equity impacts of the household cost of water under various scenarios. Findings suggest households with characteristics consistent with disadvantaged groups, including lower incomes, high density, and limited access to technology, may experience an increase in water costs under TOU rates.

Suggested Citation

  • Karrenberg, Cade & Edwards, Eric & Berglund, Emily Zechman, 2026. "Agent-based modeling to assess the effects of time-of-use water tariffs on social equity," Utilities Policy, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:juipol:v:99:y:2026:i:c:s0957178725002450
    DOI: 10.1016/j.jup.2025.102130
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