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The Spatial Evolution of a European Hydrogen Economy

Author

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  • Wolf André

    (1 Centre for European Policy, Berlin, Germany .)

Abstract

Green hydrogen has outgrown the testing stage: over the next few years, consortia across Europe will be investing large sums to build the supply chains of tomorrow. However, Europe as a whole will only be successful if it aligns the development of supply chains with the potentials of its regions and exploits the advantages of a European division of labour. This article examines the spatial distribution of hydrogen frontrunner projects in light of regional heterogeneity. It reveals a pattern that exhibits clear core regions but is only partly consistent with the localisation of current production and usage potentials. For a rapid ramp-up of hydrogen markets, European policymakers should make greater efforts to incentivise capacity formation in regions with high potential, by harmonising national levies affecting hydrogen supply chains and promoting the build-up of a cross-regional hydrogen transport infrastructure. Moreover, public investment support provided by various institutions and programmes should be better aligned to the common target of capacity upscaling.

Suggested Citation

  • Wolf André, 2023. "The Spatial Evolution of a European Hydrogen Economy," Intereconomics: Review of European Economic Policy, Sciendo, vol. 58(2), pages 111-118, March.
    • Handle: RePEc:vrs:intere:v:58:y:2023:i:2:p:111-118:n:7
    DOI: 10.2478/ie-2023-0022
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    References listed on IDEAS

    as
    1. André Wolf & Nils Zander, 2021. "Green Hydrogen in Europe: Do Strategies Meet Expectations?," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 56(6), pages 316-323, November.
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    More about this item

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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