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The EU’s competitive advantage in the "clean-energy arms race"

Author

Listed:
  • Dahlström, Petter

    (Royal Institute of Technology)

  • Lööf, Hans

    (Royal Institute of Technology)

  • Sjöholm, Fredrik

    (Research Institute of Industrial Economics)

  • Stephan, Andreas

    (Linnaeus University)

Abstract

The net-zero agreement on carbon emission from Paris 2015 gives a key role to fossil-free energy technologies with an expected multifold growth rate over the coming decades, when successively replacing oil, coal, and gas. In this paper, we delve into the EU’s competitive advantage in the evolving trade war in clean energy, investigate European strengths and weaknesses in innovation and production, and discuss the impact of the upcoming trade war on the global warming challenge. Our results show that the EU has a strong position in innovation capabilities in the strategic net-zero technologies. However, this is not matched by production capabilities: EU has only a few firms among the leading manufacturers in net-zero technologies.

Suggested Citation

  • Dahlström, Petter & Lööf, Hans & Sjöholm, Fredrik & Stephan, Andreas, 2023. "The EU’s competitive advantage in the "clean-energy arms race"," Working Paper Series in Economics and Institutions of Innovation 495, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    • Handle: RePEc:hhs:cesisp:0495
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    References listed on IDEAS

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    More about this item

    Keywords

    energy geopolitics; net-zero technologies; patents; innovation;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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