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The EU's comparative advantage in the "clean-energy arms race"
KTH Royal Instute of Technology, Sweden.
KTH Royal Instute of Technology, Sweden.
Research Institute of Industrial Economics, Sweden.
Linnaeus University, Faculty of Technology, Department of Forestry and Wood Technology. Linnaeus University, School of Business and Economics.ORCID iD: 0000-0001-5776-9396
2025 (English)In: The annals of regional science, ISSN 0570-1864, E-ISSN 1432-0592, Vol. 74, no 1, article id 14Article in journal (Refereed) Published
Abstract [en]

The net-zero agreement on carbon emission from Paris 2015 gives a key role to fossil-free energy technologies with an expected multiple growth rate over the coming decades, when successively replacing oil, coal, and gas. In this paper, we examine the EU's comparative advantage in the evolving trade war in clean-energy and show that the EU excels in developing strategic net-zero technologies, but often falls short in manufacturing the final products. The EU's Net-Zero Industry Act aims to encourage investments in the production of strategic energy products and increase self-sufficiency to meet 40% of low-carbon technology needs by 2030. However, this may not fully address long-term challenges relating to growth, job creation, decarbonization, and geopolitical resilience. Supporting innovative producers could be a more effective policy to capitalize on the EU's competitive advantage in the clean- energy sector.

Place, publisher, year, edition, pages
Springer, 2025. Vol. 74, no 1, article id 14
Keywords [en]
F02, O18, R10, Q50
National Category
Economics and Business
Research subject
Economy
Identifiers
URN: urn:nbn:se:lnu:diva-134816DOI: 10.1007/s00168-024-01343-5ISI: 001396041800001Scopus ID: 2-s2.0-85217506289OAI: oai:DiVA.org:lnu-134816DiVA, id: diva2:1935260
Available from: 2025-02-06 Created: 2025-02-06 Last updated: 2025-02-24Bibliographically approved

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Stephan, Andreas

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CiteExportLink to record
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Citation style
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