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Measuring regional sustainability in the EU: Developing and applying adjusted HDI variants with functional data analysis

Author

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  • Antonín Hořčica

    (Faculty of Economics, University of South Bohemia in České Budějovice)

Abstract

Addressing the gap in regional sustainability monitoring in the EU, this study assesses the applicability of composite sustainability indicator families at the NUTS 2 level and de-velops a methodology for regional variants of the Human Development Index (HDI) family. Nine indicator families were systematically assessed against four applicability criteria: communicability, relationship to GDP, sustainability dimension coverage, and territorial applicability. The HDI family emerged as the only methodologically sound basis for the NUTS 2 sustainability assessments. Four regional indices (R-HDI, R-IHDI, R-GDI, and the planetary pressures-adjusted R-PHDI) were derived from Eurostat and EDGAR data and piloted on 84 NUTS 2 regions across six Central European countries (V4, Germany, Austria) for 2000-2024. Functional data analysis with global envelope tests confirmed that conclu-sions about convergence depend on indicator choice: statistically significant V4 vs DE+AT differences under R-HDI (p = 0,001) disappeared following environmental adjustment via R-PHDI (p = 0,487), with emission-intensive regions substantially penalised. The R-IHDI and R-GDI required methodological compromises owing to the absence of microdata at the NUTS 2 level. This study presents the first systematic derivation and empirical application of the full HDI family at EU NUTS 2 level.

Suggested Citation

  • Antonín Hořčica, 2026. "Measuring regional sustainability in the EU: Developing and applying adjusted HDI variants with functional data analysis," Economics Working Papers 2026-02, University of South Bohemia in Ceske Budejovice, Faculty of Economics, revised 13 May 2026.
    • Handle: RePEc:boh:wpaper:02_2026
    DOI: 10.32725/ewp.2026.002
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    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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