Anatomy of Green Specialisation: Evidence from EU Production Data, 1995–2015

Abstract We study green specialisation across EU countries and detailed 4-digit industrial sectors over the period of 1995–2015 by harmonizing product-level data (PRODCOM). propose a new list goods that refines lists proposed international organizations excluding with double usage. Our analysis reveals important structural characteristics in manufacturing sector. First, production is highly concentrated, 13 out 119 industries, which are high-tech account for nearly 95% total. Second, polluting productions do not occur same sectors, specialise either or brown sectors. Third, our econometric identifies three key features as relevant specialisation: (i) first-mover advantage high persistence specialisation, (ii) complementarity non-green capabilities (iii) degree diversification capabilities.