Europe's rural regions in particular can benefit from the energy transition
According to a study by the Bertelsmann Stiftung, Europe's rural regions in particular could benefit from the energy transition. This in turn is an opportunity to strengthen economic cohesion between European regions, the foundation explained on Tuesday. According to the study, rural regions could benefit from an increase of up to 4.9 percent in employment and up to 1570 euros per capita in added value by 2050 as a result of the switch to renewables.
For many urban regions and areas whose industry is heavily dependent on fossil fuels, on the other hand, the energy transition poses a challenge: a scenario in which the loss of jobs and added value due to the phase-out of fossil fuels "cannot be fully replaced by the expansion of renewable energy generation" is looming.
This would mean up to 2450 euros less per capita in value added and up to 2.1 percent less employment by 2050, as the foundation analyzed. It simulated the impact of the expansion of renewables on the economic cycles in the regions using an input-output model.
The Bertelsmann Stiftung cited the Berlin-Brandenburg region as an example of the differences. The rural area around the capital could benefit, while Berlin "has some challenges to overcome". Against this backdrop, the foundation's Europe expert, Thomas Schwab, called for adjustments to European policy. In particular, rural regions, which have often been regarded as economically weak, must be helped to develop their potential.
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Before the energy transition, many rural regions in Europe were often overlooked. The study by Bertelsmann Foundation suggested that these regions could significantly benefit from the energy transition, potentially seeing an increase of up to 4.9% in employment and adding up to 1570 euros per capita in value by 2050 due to the shift towards renewables. However, the energy transition poses a challenge for some urban regions and industries heavily dependent on fossil fuels, with a potential loss of up to 2.1% employment and 2450 euros less per capita in value added by 2050, according to the foundation's analysis.
Source: www.ntv.de
