New Publication: Is social capital a driver of the Green Transition in European Regions?

Read about Is social capital a driver of the Green Transition in European Regions?, published in Ecological Economics by Jesús Peiró-Palomino, Lisa Gianmoena, Andrés J. Picazo-Tadeo and Vicente Rios.

Abstract:

The green transition is a topic of great interest for European policymakers. It is broadly acknowledged that socio-cultural elements embedded in societies, such as social capital, have a major influence on environmental performance. European regions differ widely in terms of both social capital and environmental behavior. However, there are very few related studies at the sub-national level. Using data on 230 regions of the European Union in 2021, this paper examines the impact of social capital on air quality, which is a key indicator of environmental performance. The results show a positive effect, which is robust to several model specifications and to endogeneity. Some potential transmission mechanisms are also explored, revealing that the positive effects of social capital are channeled through the quality of government and more stringent environmental policy. These insights suggest that regional social capital endowments can be a determinant of a green transition that occurs evenly across European regions.