A review of energy systems and economic modelling tools capable of estimating the finance needs and responses relevant to energy, water, and food security in South Africa in the face of climate change

This paper reviews the extent of hybrid energy- and climate-economy modelling within South Africa. Only a small number of hybrid climate-economy models exist, with SATIMGE being the most developed model of this type used for South Africa. SATIMGE is reviewed with respect to its potential usefulness and limitations for estimating finance needs to ensure not only energy, but also water and food security in the face of a warming climate. SATIMGE is highly developed to evaluate energy mitigation policy. However, it lacks detail on physical climate damage risk and financial dynamics of the economy and has no spatial resolution. Considering climate and financial risk is crucial for assessing the macroeconomic and socioeconomic implications of climate-resilient systems. Improving spatial resolution in modelling tools can enhance accuracy in climate-economy assessments. The paper will examine the SATIMGE model and propose advancements in South African climate-economy modelling, including consideration of financial dynamics, climate impacts, and spatial detail.