The Spatial Evolution of a European Hydrogen Economy

Wolf André
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Wolf André: Centre for European Policy, Berlin, Germany.

Intereconomics: Review of European Economic Policy, 2023, vol. 58, issue 2, 111-118

Abstract: Green hydrogen has outgrown the testing stage: over the next few years, consortia across Europe will be investing large sums to build the supply chains of tomorrow. However, Europe as a whole will only be successful if it aligns the development of supply chains with the potentials of its regions and exploits the advantages of a European division of labour. This article examines the spatial distribution of hydrogen frontrunner projects in light of regional heterogeneity. It reveals a pattern that exhibits clear core regions but is only partly consistent with the localisation of current production and usage potentials. For a rapid ramp-up of hydrogen markets, European policymakers should make greater efforts to incentivise capacity formation in regions with high potential, by harmonising national levies affecting hydrogen supply chains and promoting the build-up of a cross-regional hydrogen transport infrastructure. Moreover, public investment support provided by various institutions and programmes should be better aligned to the common target of capacity upscaling.

JEL-codes: O14 Q42 R11 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:intere:v:58:y:2023:i:2:p:111-118:n:7

DOI: 10.2478/ie-2023-0022

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