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Are EU low-carbon structural funds efficient in reducing emissions?

Marco Due\~nas and Antoine Mandel
Authors registered in the RePEc Author Service: Marco Dueñas

Papers from arXiv.org

Abstract: We investigate the effectiveness of low-carbon expenditures from the European Structural and Investment Funds in reducing greenhouse gas emissions across EU regions. Using trend and cycle decomposition of two indicators -- per capita emissions and emissions intensity -- we find highly heterogeneous effects. In less developed regions, investments are linked to long-term increases in per capita emissions, while in transition and developed regions, effects are weak or not significant. Instrumental variable estimates confirm this pattern. When disaggregated by gas type, results remain inconsistent. Overall, our findings highlight the limited climate effectiveness of EU funding and the need for region-specific strategies.

Date: 2024-08, Revised 2025-07
New Economics Papers: this item is included in nep-eec, nep-ene and nep-ppm
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