Research Article // A WEFE nexus CGE model for Réunion Island: the REWEFE model
By Henseler. This study introduces and validates the REWEFE model, offering a structured framework to enhance the evaluation and interpretation of formative measurement in management research.
Introduction
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.
Published
2025
In
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Henseler (2025): A WEFE nexus CGE model for Réunion Island: the REWEFE model