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Groundwater constitutes one of the most critical sources of freshwater for human use, and modeling the interconnection of groundwater (ecological) and human (social) can provide important insights into their interactions. Also, water markets are considered efficient tools to promote the optimal utilization of scarce water resources. A multi-agent system simulation (MASS) model of a groundwater market was developed, building on a previous model, in which self-interested agents trade water use quotas to maximize individual benefits. This model integrates an agent-based platform of NetLogo with the calibrated groundwater model of MODFLOW, incorporating the watershed model of SWAT, using Python-based codes. Then, the free-access, uniform quota on groundwater utilization and groundwater market implemented in the MASS are evaluated against the Centralized Optimal Model (COM) and groundwater market set by a central planner with complete insight, using MATLAB-based codes that integrate MATLAB with the calibrated groundwater model of MODFLOW, incorporating the watershed model of SWAT. This comparison evaluates their economic and environmental impacts using two key metrics: the average annual benefit (AAB) and the violation of streamflow (VSF). The outcomes show that simulations with more realistic, shortsighted, self-interested, and heterogeneous agents (MASS) perform poorly under a uniform quota policy compared to COM, and trading of permits among farmers leads to enhanced economic benefits and, occasionally, a decrease in environmental violations. The Ardabil Plain, located in northwestern Iran, is employed as a case study for this paper. • Enhancing managing agricultural water resources necessitates the simulation of linked social-ecological systems. • To thoroughly assess the effectiveness of a uniform quota and groundwater market, a comprehensive physical model is crucial. • Differences in agent heterogeneity significantly impact the effectiveness of a uniform quota and the groundwater market. • The groundwater market proves beneficial for groundwater management.
Kamali et al. (Mon,) studied this question.