Smart and Green. The uneven effects of the Twin Transition in European regions

E. Marrocu (), R. Paci () and Luca Serafini

Working Paper CRENoS from Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia

Abstract: This paper investigates the impact of digital and green programmes within Smart Specialisation Strategies on regional productivity growth across European regions. It examines the combined influence of digital and green priorities (Twin Transition) and how their effects vary according to regions' initial economic conditions. The analysis reveals a U-shaped relationship - the Twin Transition is positively and significantly associated with productivity growth in low-productivity regions, whereas regions with intermediate productivity levels exhibit weaker or even negative associations. Conversely, high-productivity regions experience modest yet stabilising effects. These findings highlight the significance of the middle-income trap and the need for context-sensitive policy design.

Keywords: Green policies; Digital policies; Twin Transition; Smart Specialisation Strategy; regional economic growth; european regions (search for similar items in EconPapers)
Date: 2025
New Economics Papers: this item is included in nep-eec, nep-env, nep-sbm and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:cns:cnscwp:202510

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