Define green sector: a pre-requisite to analyze China-Europe cooperation in the green industries

This work-in-progress paper suggests a classification of environmental codes. It is one of the first output of a wider research project analyzing Chinese inward and outward FDI in the green industries. This study compares already existing methodological resources and proposes an original taxonomy of green sectors. The literature confirms the absence of a clear classification on different environmental activities (products and services). In many cases goods and services can only be partly categorized as environmental. The study shows a first categorization of economic activities through a codes list where it is possible understand which types of goods and services are considered green. As we review, there are some goods and services that are considered as partly green and it will be necessary to analyze in depth each code. Not all environmental activities could be classified with the highest precision, as there are some activities that do not fully qualify as green activities. In order to have a more reliable assessment, it is necessary to test all items of the taxonomy using the macro or industry/firm level quantitative data. This is a work-in-progress study and it represents a first step to a wider research agenda funded by the European Union. Scholars, practitioners and policy makers can have a clearer definition on environmental products/services.