Towards the green transition in the European regions. Assessing eco-efficiency in greenhouse gas emissions

Purpose This paper aims to assess eco-efficiency in greenhouse gas (GHG) emissions, which are a major driver of global warming, across European Union regions and examine its determinants. Design/methodology/approach In line with the European Green Deal’s (EGD) green transition objectives, eco-efficiency is evaluated as the potential of regions to reduce GHG emissions while maintaining gross domestic product (GDP). Data envelopment analysis, truncated regression and bootstrapping techniques are used to ensure robust and reliable results. Findings Nordic and Western regions rank among the most eco-efficient, whereas Central and Eastern regions lag behind. Innovation capacity, capital city status, institutional quality (quality of government and social capital) and population size contribute to higher eco-efficiency, whereas large industrial sectors hinder progress towards the green transition. Practical implications The green transition requires place-based policies that promote technological upgrading, industrial diversification and innovation to achieve emission reductions compatible with sustained economic growth. Strengthening governance quality and social capital can further improve policy outcomes and long-term eco-efficiency. Originality/value Eco-efficiency is assessed at the regional level using GHG emissions as an indicator of ecological performance, in keeping with the territorial focus and policy objectives of the EGD. A second-stage analysis is conducted to identify the factors that drive regional eco-efficiency.