How Water Flows Through CGE Models: A Systematic Review

Martin Henseler, Hélène Maisonnave and Enzo Salvatore ()
Additional contact information
Enzo Salvatore: 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

Working Papers from HAL

Abstract: Water-related challenges, including scarcity, drought, climate change, and the policies designed to address them, increasingly require integrated analytical approaches capable of capturing economy-wide impacts and policy interactions. Water computable general equilibrium (WCGE) models are widely applied for this purpose, linking water resources with macroeconomic systems. This systematic literature review examines the research scope, spatial and temporal characteristics, modelling approaches, and representations of water within production functions in WCGE studies. To analyse the wide range of modelling choices, a taxonomy and catalogue of production tree specifications are developed. The results reveal a highly diverse and increasingly interdisciplinary field, with growing applications in climate change, energy, agriculture, and Water–Energy–Food–Ecosystem (WEFE) nexus research. The representation of water as a production factor exhibits substantial flexibility and variation across studies, reflecting the adaptation of model structures to different research questions and policy contexts. Advancing WCGE research will require greater transparency, comparability, and methodological consistency to strengthen its contribution to policy analysis and support sustainable water governance and resource management.

Keywords: water; WEFE-nexus; economic assessment; simulation; literature review (search for similar items in EconPapers)
Date: 2026-06-12
Note: View the original document on HAL open archive server: https://hal.science/hal-05263526v2
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hal.science/hal-05263526v2/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-05263526

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().