Sustainability, Resource Efficiency and Competitiveness. An Assessment of Resource Efficiency Policies in the European Union. Bruges European Economic Research Papers (BEER) 32/2015.

Addressing high and volatile natural resource prices, uncertain supply prospects, reindustrialization attempts and environmental damages related to resource use, resource efficiency has evolved into a highly debated proposal among academia, policy makers, firms and international financial institutions (IFIs). In 2011, the European Union (EU) declared resource efficiency as one of its seven flagship initiatives in its Europe 2020 strategy. This paper contributes to the discussions by assessing its key initiative, the Roadmap to a Resource Efficient Europe (EC 2011 571), following two streams of evaluation. In a first step, resource efficiency is linked to two theoretical frameworks regarding sustainability, (i) the sustainability triangle (consisting of economic, social and ecological dimensions) and (ii) balanced sustainability (combining weak and strong sustainability). Subsequently, both sustainability frameworks are used to assess to which degree the Roadmap follows the concept of sustainability. It can be concluded that it partially respects the sustainability triangle as well as balanced sustainability, primarily lacking a social dimension. In a second step, following Steger and Bleischwitz (2009), the impact of resource efficiency on competitiveness as advocated in the Roadmap is empirically evaluated. Using an Arellano–Bond dynamic panel data model reveals no robust impact of resource efficiency on competiveness in the EU between 2004 and 2009 – a puzzling result. Further empirical research and enhanced data availability are needed to better understand the impacts of resource efficiency on competitiveness on the macroeconomic, microeconomic and industry level. In that regard, strengthening the methodologies of resource indicators seem essential. Last but certainly not least, political will is required to achieve the transition of the EU-economy into a resource efficient future

From barriers to opportunities: Enabling investments in resource efficiency for sustainable development

Increasing investments in resource efficiency is considered essential for transitioning towards a sustainable model of economic growth. This article presents evidence on the complex incentives, trade-offs, and challenges associated with the economics and politics of resource efficiency investments, especially in light of the Sustainable Development Goals and the Paris Climate Agreement. By synthesising and evaluating a wide range of empirical evidence, practitioners’ insights, and policy perspectives, this article carefully examines the role of resource efficiency in reconciling environmental and economic objectives. It makes particular reference to the investment barriers and transitional implications of moving economies towards more circular and resource efficient pathways. In doing so, it provides a policy-oriented guide and toolbox to help overcome barriers, unlock the economic potential of resource efficiency, and highlight the challenges associated with the resource transition. Overall, this article brings together evidence, aiming to further develop and propose new strategies for improving the efficient use of natural resources to advance the sustainable development agenda

Competitiveness and Climate Change Mitigation – Empirical Evidence on the Effects of Material Use and Material Productivity on Competitiveness and Greenhouse Gas Emissions in Europe

Aligning competitiveness with climate change mitigation objectives lies at the heart of contemporary discourses on sustainable development, resource efficiency, green growth, and the circular economy. While numerous scholars and policymakers, particularly in Europe, follow the notion that decreasing material use and increasing material productivity can boost competitiveness and help to mitigate climate change, the empirical evidence underlying this assertion has put little emphasis on two important issues. First, many studies predominantly rely on case studies, often not considering dynamic effects and heterogeneity across firms, sectors, countries, material subgroups, and material indicators. Second, the majority of investigations do not address the potential problem of endogeneity in empirical models. This dissertation attempts to shift the focus on these and other issues having received relatively little scrutiny in the existing literature by four interrelated analyses on European economies and firms. First, the effect of material use on greenhouse gas (GHG) emissions is empirically assessed, finding a robust and positive link mostly driven by fossil fuel use. Second, it is investigated whether economic growth is a driver of material use, suggesting that economic growth causes an increase in material use for Western European countries. Third, the effects of material productivity on indicators of macroeconomic competitiveness and GHG emissions are investigated, finding little evidence for any statically significant link, except of increased average wages and improvements in the current account. Fourth, the effects of eco-innovation induced material productivity increases on microeconomic competitiveness and firm level GHG emissions are studied, providing evidence that material productivity increases microeconomic competitiveness and reduces GHG emissions. However, these effects are heterogeneously distributed across sectors and countries. Overall, this dissertation draws a nuanced picture by providing new evidence that material use and material productivity can support competitiveness and climate change mitigation objectives, but such benefits are likely to be unequally distributed across firms, sectors, and countries. To this end, the results provide important policy insights, including that weight-based material indicators are linked to GHG emissions, internalising externalities is essential, and eco-innovations can enable certain firms, sectors, and countries to grasp the benefits of material productivity improvements. Moreover, it is important to further investigate the implications of moving towards more material productive economies based on greater emphasis on heterogeneity, endogeneity, and improved data

EIB Working Paper 2021/02 - The birth of new high growth enterprises

Internationalisation and the adoption of new digital technologies play an important role in the formation of new high growth enterprises. This paper examines this relationship for high growth enterprises in Europe and the UK, using data from the EIB Investment Survey and ORBIS. Its results highlight the complex influence of exporting and foreign direct investment on the capacity to become a high growth enterprise and the role of new digital technologies in this process

High Growth Enterprises: demographics, finance & policy measures

This report analyses the geographical (by EU Member State and subnational level) and sectoral distribution of high growth enterprises (HGE). It also examines the contribution of venture capital markets to financing growth and reviews relevant policy instruments across Member States. In addition, the report proposes a HGE indicator framework consisting of 17 standardised indicators. Finally, the report contains country-specific factsheets providing insights on the HGE-related situation, including factors that facilitate or obstruct their development, in 21 EU Member States.JRC.B.7-Knowledge for Finance, Innovation and Growt

EIB Working Paper 2021/02 - The birth of new high growth enterprises

Internationalisation and the adoption of new digital technologies play an important role in the formation of new high growth enterprises. This paper examines this relationship for high growth enterprises in Europe and the UK, using data from the EIB Investment Survey and ORBIS. Its results highlight the complex influence of exporting and foreign direct investment on the capacity to become a high growth enterprise and the role of new digital technologies in this process

Financing growth, and Policy measures

High growth enterprises (HGEs) make a disproportionately high contribution to job creation and economic growth. Through their frequently innovative, technology-based character, they also can have a significant impact on industrial renewal, sectoral productivity and regional competitiveness. This report – which follows on from a previous one published just before the outbreak of the COVID- 19 pandemic (Flachenecker et al., 2020) – examines the EU’s economies through the lens of HGEs and those enterprises benefiting from venture capital investments which have the characteristics or aspiration to achieve very high rates of growth. Rather than merely updating the analyses presented last year, this report deepens some specific analyses, for instance regarding eco-innovation, digitalization and the role of HGEs in previous recessions and recoveries. It also updates and improves the indicator framework used to characterise country-specific framework conditions for HGEs and brings into the picture a range of different data sources which permit commentary and insights of relevance to the current crises context. The report also provides in an annex a series of factsheets consisting of snapshot graphs and figures – one for each of the EU27 member states - based on the analyses which are developed collectively for the EU in the main body of the report