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Research Brief

The Single Market's Role in the Green Transition

An analysis of EU economic policy and regulation as a driver for sustainable transition.

Collaborators

Level

HHX

Status

Completed

This project serves as an early analytical contribution to debates that are now central to EU economic policy.

Summary

This project analyzes the EU's role in the green transition, focusing on how economic policy, regulation, and institutional cooperation can be used to promote a sustainable transition of European economies. The project examines how climate and environmental policy in the EU is not merely a question of norms and goals, but also a matter of economic incentives, market design, and coordination among member states.

Research Questions

01

How does the EU function as a framework setter for the green transition?

02

Which economic instruments are most effective in promoting sustainability?

03

What trade-offs exist between ambitious climate policy and competitiveness?

04

Why is European coordination crucial to avoid leakage and competitive distortion?

Method & Theory

Model Framework

Political Economy Analysis

Identification Strategy

Combination of economic theory, EU political analysis, and concrete policy examples.

Data & Frequency

EU directives, market data for CO2 allowances, green technology investment figures.

Estimation Approach

Assessment of regulation's effect on market behavior and investments.

[ Transmission Pathway Diagram: Model Architecture ]

Central Points

  • EU as Framework Setter: Common regulation and market-based instruments reduce the risk of national fragmentation.

  • Economic Instruments: CO₂ pricing and market regulation are more effective than symbolic policy.

  • Trade-offs: Ambitious climate policy creates short-term costs but long-term gains in innovation and autonomy.

  • Coordination: Without common solutions, there is a risk of uneven playing fields and capital flight.

Bibliography

Subjects

International Economics A
Business Economics A

Sources

Sources

Economic Theory, EU Commission Reports, Climate Policy Research.

Software

Word / Excel.

Download Project

Reference
Ebsen, Anton. The Single Market's Role in the Green Transition. HHX Project.

Perspectives

EU Green Deal: Understanding the underlying economic mechanisms.

Industrial Policy: How states can promote green industries without distorting the market.

Market Design: The design of future electricity and CO2 markets.

Cite this work

@misc{the_2026,
  author = {Ebsen, Anton. The Single Market's Role in the Green Transition. HHX Project.},
  title = {The Single Market's Role in the Green Transition},
  year = {2026},
  url = {https://antonebsen.dk/projects/the-single-market's-role-in-the-green-transition}
}
                  
Ebsen, Anton. The Single Market's Role in the Green Transition. HHX Project.