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A WEFE nexus CGE model for Réunion Island: the REWEFE model

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  • Martin Henseler

    (LERN - Laboratoire d'Economie Rouen Normandie - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université - IRIHS - Institut de Recherche Interdisciplinaire Homme et Société - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université)

Abstract

The increasing frequency of extreme weather events, geopolitical conflicts, and environmental pressures underscores the urgent need for sustainable resource management. This study introduces a Computable General Equilibrium model integrating the Water-Energy-Food-Ecosystem nexus for Réunion Island, facing situations of water scarcity, economic vulnerability, and environmental challenges. The model simulates interactions between key resource sectors and can be used to assess impacts of economic shocks, environmental changes and policy measures. Four scenarios highlight the impacts of global shocks, water availability, and policy instruments, such as pricing mechanisms for sewage treatment. The model serves as a macroeconomic laboratory for scenario analysis and policy evaluation. The model is suitable to contribute to the sustainable development discussions, aligning with policy objectives, e.g., the United Nations Sustainable Development Goals, the European Green Deal and the recently released European Water Resilience Strategy.

Suggested Citation

  • Martin Henseler, 2025. "A WEFE nexus CGE model for Réunion Island: the REWEFE model," Working Papers hal-05176215, HAL.
    • Handle: RePEc:hal:wpaper:hal-05176215
    Note: View the original document on HAL open archive server: https://hal.science/hal-05176215v1
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    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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