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

Martin Henseler (), Olivier Beaumais () and Hélène Maisonnave ()
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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
Olivier Beaumais: 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
Hélène Maisonnave: EDEHN - Equipe d'Economie Le Havre Normandie - ULH - Université Le Havre Normandie - NU - Normandie Université

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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.

Keywords: Réunion Island WEFE nexus economic modelling policy scenarios impact assessment water governance JEL-code: C68 Q25; Réunion Island; WEFE nexus; economic modelling; policy scenarios; impact assessment; water governance (search for similar items in EconPapers)
Date: 2025-07-08
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