Assessing the Performance of European Union Regions in the “People” and “Prosperity” Pillars of the <scp>SDGs</scp>

ABSTRACT This paper addresses the gap in subnational assessments of Sustainable Development Goals (SDGs) by benchmarking the performance of European Union NUTS‐2 regions in the People and Prosperity pillars of the 2030 Agenda for Sustainable Development. We construct composite indices using a methodological framework that combines the “benefit‐of‐the‐doubt” approach with cross‐efficiency Data Envelopment Analysis, enabling an assessment of both overall performance and the balance across SDG indicators. The resulting indices, which take values within the standard unit interval, are then regressed on a set of explanatory variables using beta regression models. The analysis uncovers substantial regional disparities and identifies positive associations between regional governance quality, innovation intensity, and balanced sustainable development outcomes. These findings provide valuable insights into the dynamics of regional sustainability within the European Union.