Research Article // Modelling the WEFE nexus on Réunion Island
By Henseler et al. This study presents a CGE model integrating the WEFE nexus for Réunion Island, enabling assessment of how global shocks, resource constraints, and policy measures shape economic and environmental outcomes.
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 (CGE 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. It 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
24 September 2025
By
Download
Henseler et al. (2025): Modelling the WEFE nexus on Reunion Island