Green, Greener, Super-Green Land Transport: Now or Never? Input-Output Analysis of Selected European Countries

Abstract

Transport significantly contributes to emissions, waste, and pollution as being the dominant consumer of fossil fuels. Land transport greening is a primary focus for policymakers aiming for climate neutrality and emission goals, and for businesses facing increasing regulations and societal pressure to adopt greener practices. The aim of the research is to assess the economic interindustry impact of technological shifts in land transport (NACE H49) across various EU countries, by using input-output approach. The study examines 2020 and 2022 product-by-product input-output tables of selected EU countries. Modelling results suggest that a 20% reduction in fuel costs for land transport, achieved through the adoption of electricity, would have a neutral or slightly negative effect on the overall output. The effect of adoption of greener technologies is not conclusive. Policymakers at both the EU and national levels and businesses facing risks from the transition to green or greener solutions are advised to consider regional specifics, manufacturing dependencies, and import reliance in strategic planning.