Turning Point 2020: Has the European Green Deal Boosted Sustainable Competitiveness in Times of Crisis?

Abstract

The year 2020 marked a turning point for sustainable development, combining the disruptive effects of COVID-19 with the goals of the European Green Deal. This study examines how these factors affected sustainable competitiveness in 11 European countries, including EU members and non-EU leaders Norway and Switzerland, between 2017 and 2022. Using a Difference-in-Differences approach, we assess the roles of CO2 emissions, renewable energy use, and material import dependency. Results show that EU countries saw a significantly greater increase in sustainable competitiveness after 2020 compared to Norway, while no such effect was found relative to Switzerland. Renewable energy contributed positively to post-2020 gains, whereas material import dependency consistently limited performance. CO2 emissions had no overall impact, but post-2020 reductions appear to have supported EU progress. These findings offer empirical insight into how environmental policy and crisis response influence competitiveness and underscore the importance of targeted national strategies to strengthen sustainable competitiveness.