Green Transition

Client/Funding Institution

Kontext Institut

Abstract

Green technologies hold great potential for the European economy. Faced with the active use of green industrial policies in China and the US, Europe cannot sit back and observe the unfolding of this ‘green race’. A deeper EU involvement in the production of green technologies could create new business opportunities and ignite a new wave of innovations and investment. Similarly, in the face of escalating environmental degradation and the imperative of mitigating climate change, nations grapple with the intricate interplay between economic growth and environmental sustainability. In such context, understanding the vulnerabilities and resilience of industries emerges as a pivotal consideration. This project analysed the impact on GDP and employment of reshoring to the EU the production of five major green technologies (photovoltaics, wind turbines, batteries, electric motors and electric vehicles) and the resilience of low carbon intensity (LCI) versus high carbon intensity (HCI) industries of the Austrian economy, examining the impact of energy price shocks on real gross value added (GVA) and employment within both LCI and HCI industries.

Duration

April 2024 - May 2024

wiiw team Leader

Francesca Guadagno

wiiw Staff

Corinna Covi, Andreas Lichtenberger, Oliver Reiter, Robert Stehrer

Publications

Keywords: green transition, energy price shocks, I/O-sector-analysis, VAR, GDP, GVA, employment, climate policy, photovoltaics, batteries, electric vehicles

Countries covered: Austria, EU

Research Areas: Macroeconomic Analysis and Policy, International Trade, Competitiveness and FDI, Sectoral studies

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