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The EU's comparative advantage in the "clean-energy arms race"
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management.
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.).ORCID iD: 0000-0002-5871-8571
Research Institute of Industrial Economics, Stockholm, Sweden.
Linnaeus Univ, Växjö, Sweden.
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 Nature , 2025. Vol. 74, no 1, article id 14
Keywords [en]
F02, O18, R10, Q50
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:kth:diva-359507DOI: 10.1007/s00168-024-01343-5ISI: 001396041800001Scopus ID: 2-s2.0-85217506289OAI: oai:DiVA.org:kth-359507DiVA, id: diva2:1934876
Note

QC 20250205

Available from: 2025-02-05 Created: 2025-02-05 Last updated: 2025-02-26Bibliographically approved

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Dahlström, PetterLööf, Hans

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