Europe's Future Industrial Landscape: A Green Industrial Location Attractiveness Index

Abstract

Increased gas prices, constraints in nuclear power generation, and diminished hydroelectric production have introduced challenges for Europe, coinciding with an emerging green industrialization. Utilizing data from the European Commission and Eurostat, we introduce the Green Industrial Location Attractiveness Index, a tool designed to help assessing locations of future green industrial developments. Our findings highlight Sweden, Finland, and France as probable destinations for green industrial projects. A revealing geographical divide where northern European countries rank higher compared to their southern counterparts. This analysis enhances our understanding of Europe's changing industrial landscape amidst volatile electricity prices, offering insights for policymakers and investors. An overarching conclusion of the paper is that well-crafted energy policies help mitigate the economic impacts of energy price fluctuations on energy-intensive industries, ensuring that Europe's industrial landscape remain competitive. JEL classification: Q41, L94, Q42, Q54.