The Impact of Green Technologies on GDP and Employment in the EU
By: Guadagno, Francesca.
Contributor(s): Reiter, Oliver | Stehrer, Robert
.
Material type: 
BookSeries: wiiw Policy Notes and Reports: 80Publisher: Wien : Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw), 2024Description: 29 S., 2 Tables, 9 Figures and 2 Boxes, 30cm.Subject(s): green transition | photovoltaics | batteries | electric vehicles | GDP | employmentCountries covered: EU Member States | European Unionwiiw Research Areas: International Trade, Competitiveness and FDI | Sectoral studiesClassification: Q55 | Q56 | F14 | O25 Online resources: Click here to access online Summary: Increasing production of green technologies in the EU holds great potential for the European economy. This study uses trade data and input-output tables to estimate the impacts 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. Our findings show that reshoring these five technologies would increase EU GDP by EUR 18.4 billion, or 0.13% of EU GDP, and create 242,728 new jobs. The same shift of imports to EU production would have had roughly half of the impact in 2010. We also find significant spillover effects on other sectors of the economy, particularly for metal products, wholesale and retail, professional, scientific and technical activities, and administrative and support services. To make the most from the transition, we argue that EU green industrial policy should put more emphasis on manufacturing capacities and innovation to meet the targets of the Net Zero Industry Act, remain internationally competitive, and reduce strategic dependencies.
| Item type | Current library | Call number | Status | Date due | Barcode | |
|---|---|---|---|---|---|---|
| Paper | WIIW Library | 80 (Browse shelf(Opens below)) | Available | 1000010006918 |
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Increasing production of green technologies in the EU holds great potential for the European economy. This study uses trade data and input-output tables to estimate the impacts 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. Our findings show that reshoring these five technologies would increase EU GDP by EUR 18.4 billion, or 0.13% of EU GDP, and create 242,728 new jobs. The same shift of imports to EU production would have had roughly half of the impact in 2010. We also find significant spillover effects on other sectors of the economy, particularly for metal products, wholesale and retail, professional, scientific and technical activities, and administrative and support services. To make the most from the transition, we argue that EU green industrial policy should put more emphasis on manufacturing capacities and innovation to meet the targets of the Net Zero Industry Act, remain internationally competitive, and reduce strategic dependencies.