The Geography of the Green Transition: Performance, Vulnerabilities and Opportunities

Sebastian Ritter () and Vicente Royuela ()
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Sebastian Ritter: AQR-IREA, University of Barcelona
Vicente Royuela: AQR-IREA, University of Barcelona

No 202601, AQR Working Papers from University of Barcelona, Regional Quantitative Analysis Group

Abstract: As the EU races to meet its 2030 emissions reduction target, regional disparities in transition progress threaten to leave some territories behind. We introduce the Regional Green Transition Performance Index (RGTP), a novel composite measure capturing progress across seven pillars (environmental; energy; circular economy and waste; sustainable development; just transition; innovation and policy; and transport and mobility) for 232 European NUTS2 regions over 14 years. Drawing on 31 indicators, we map spatial patterns and dynamic processes. Furthermore, we argue that the green transition acts as a structural force whose potential effects on regional development can be expressed along two axes: vulnerability and opportunity. We propose an alternative measure of Regional Green Transition Opportunity index (RGTO) which we combine with the existent Regional Green Transition Vulnerability index (RGTV) of RodríguezPose & Bartalucci (2024) to construct a simple 2×2 typology of regions. We translate this evidence into a policy playbook: pair risk-mitigation with opportunity-creation and embed diffusion mechanisms so gains propagate beyond individual regions. The paper contributes an open dataset, a transparent methodology to separate performance, opportunities, and vulnerabilities which responds to the EU’s performance-based policy agenda by offering a region-level monitoring tool that complements cohesion instruments (ERDF/CF/JTF/ESF+) and flags where to reduce vulnerabilities while mobilizing opportunities in the green transition.

Keywords: green transition; European Union; regional inequality; green transition index. JEL classification: C43; Q56; R11; R12 (search for similar items in EconPapers)
Pages: 55 pages
Date: 2026-02, Revised 2026-02
New Economics Papers: this item is included in nep-eec and nep-uep
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Persistent link: https://EconPapers.repec.org/RePEc:aqr:wpaper:202601

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