Assessment of the resilience factors associated with European green efficiency

Abstract

Climate change mitigation and socio-economic sustainability are high on the agendas of major world leaders. The European Union (EU) leads efforts in this regard by broadening sustainability to include climate neutrality, biodiversity, and social equity. This research provides novel insights into EU Member States' progress towards sustainability goals and the factors enhancing their resilience to environmental and socio-economic challenges. It thus contributes to the green transition by meeting a threefold objective: (1) to quantify efficiency, differentiating between the two stages that define the green revolution—climate change mitigation and social protection/adaptation; (2) to assess whether productivity changes are due to better resource use or technological advances; and (3) to determine the resilience factors (economic, social, and institutional) associated with this process. The methods used are two-stage DEA-bootstrap, the Sequential Malmquist Index and the Generalized Method of Moments, applied to the EU for the period 2013–2022. The results show a lack of homogeneity across Europe in achieving established goals, both in terms of efficiency levels and in productivity advances. The latter come almost exclusively from technological innovations, with limited attention given to improving the use of available resources. Furthermore, GDP per capita, the employment rate and active labour market policies stand out as the resilience factors that have the greatest influence on ecological efficiency levels. Accordingly, a practical application of the research findings would be to strengthen these factors. This recommendation provides a basis for guiding policies and strategies that facilitate continuous adaptation in the face of environmental adversity, thus helping to build a sustainable society that can respond flexibly to future events.