Sub-River Basin CGE Models for Europe

Martin Henseler () 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, PEP - Partnership for Economic Policy (PEP), Nairobi, Kenya
Hélène Maisonnave: FAI - Université Le Havre Normandie - Faculté des Affaires Internationales - ULH - Université Le Havre Normandie - NU - Normandie Université, PEP - Partnership for Economic Policy (PEP), Nairobi, Kenya, EDEHN - Equipe d'Economie Le Havre Normandie - ULH - Université Le Havre Normandie - NU - Normandie Université

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Abstract: Climate change is intensifying pressures on water resources, requiring integrated and regionally adapted governance approaches. This paper assesses the feasibility of developing sub-river basin (SRB) Computable General Equilibrium (CGE) models for Europe, aligned with the European Water Resilience Strategy. Building on regional Social Accounting Matrices from the RHOMOLO database and Physical Water Accounts, we propose a methodology to integrate economic and hydrological data at policy-relevant scales. A spatial matching procedure between SRB and NUTS2 regions is developed using quantitative overlap thresholds to ensure both hydrological and economic representativeness. The approach is applied to metropolitan France, identifying eight suitable SRB–NUTS2 combinations for modelling. Results demonstrate that SRB-level CGE models can capture regional heterogeneity, intersectoral linkages, and water constraints more effectively than national models. The framework is transferable across Europe, offering strong potential to support climate adaptation and water governance decisions at the sub-river basin level.

Keywords: Water governance; Computable General Equilibrium; Sub-river basin; Spatial matching; Climate change (search for similar items in EconPapers)
Date: 2026-02-14
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