Environmental Expenditures and Environmental Investments in Ten EU Member States: Comparative Analysis and Typology at the National and Sectoral Levels

Read the full article

Discuss this preprint

Start a discussion What are Sciety discussions?

Listed in

This article is not in any list yet, why not save it to one of your lists.
Log in to save this article

Abstract

The growing emphasis on environmental sustainability within the European Union raises important questions about the internal structure of corporate environmental effort. This study examines environmental expenditures (intermediate consumption of environmental protection services) and environmental investments (gross fixed capital formation for environmental protection) in ten EU member states over 2015–2022, using Eurostat Environmental Protection Expenditure Accounts data at both the national and sectoral levels (NACE Rev.2 sectors A, B, C, D). Two hypotheses are tested empirically. First, sectoral differences in the investment-to-expenditure ratio are statistically significant (Kruskal–Wallis H = 27.72, p < 0.0001): electricity, mining, and manufacturing each display a higher ratio than agriculture, with the most pronounced contrast for electricity. Second, Eastern European member states exhibit a systematically higher investment-to-expenditure ratio than the remaining countries in the sample (level difference: β = +1.01, p < 0.001), although the two groups follow parallel trajectories without convergence or divergence over the period examined. Building on the relative intensity of the two indicators, the study proposes a four-quadrant typology—active transformation, investment focus, maintenance model, and low-intensity profile—whose stability is confirmed by bootstrap resampling, sub-sample analysis, and an alternative deflator specification. The findings suggest that the internal composition of environmental effort is as informative as its overall level and that sectoral disaggregation is essential for characterising patterns of environmental effort in the EU.

Article activity feed