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.
AdewuyiA. O.AwodumiO. B. (2021). Environmental pollution, energy import, and economic growth: Evidence of sustainable growth in South Africa and Nigeria. Environmental Science and Pollution Research, 28(12), 14434–14468. https://doi.org/10.1007/s11356-020-11446-z
2.
BarrieJ.SchröderP. (2022). Circular economy and international trade: A systematic literature review. Circular Economy and Sustainability, 2(2), 447–471. https://doi.org/10.1007/s43615-021-00126-w
3.
BhattacharyaM.ParamatiS. R.OzturkI.BhattacharyaS. (2016). The effect of renewable energy consumption on economic growth: Evidence from top 38 countries. Applied Energy, 162, 733–741. https://doi.org/10.1016/j.apenergy.2015.10.104
4.
BleischwitzR.YangM.HuangB.XuX.ZhouJ.McDowallW.YongG. (2022). The circular economy in China: Achievements, challenges and potential implications for decarbonisation. Resources, Conservation and Recycling, 183, 106350. https://doi.org/10.1016/j.resconrec.2022.106350
5.
BogoslovI. A.LunguA. E.StoicaE. A.GeorgescuM. R. (2022). European green deal impact on entrepreneurship and competition: A free market approach. Sustainability, 14(19), Article 12335. https://doi.org/10.3390/su141912335
6.
BresciaV.EspositoP.AmelioS.BianconeP. P. (2023). Rethinking green investment and corporate sustainability: The South European countries' experiences during the COVID-19 crisis. EuroMed Journal of Business, 19(4), 1202–1218. https://doi.org/10.1108/EMJB-03-2023-0093
CarbonnierG.WagnerN. (2015). Resource dependence and armed violence: Impact on sustainability in developing countries. Defence and Peace Economics, 26(1), 115–132. https://doi.org/10.1080/10242694.2013.848579
9.
Cifuentes-FauraJ. (2022). European union policies and their role in combating climate change over the years. Air Quality, Atmosphere & Health, 15(8), 1333–1340. https://doi.org/10.1007/s11869-022-01156-5
10.
DabbousA.Aoun BarakatK.WoodsideA. G. (2025). How do configurations of the sharing economy, renewable energy, and financial development support/dampen nations’ sustainable competitiveness?Journal of Cleaner Production, 511, Article 145647. https://doi.org/10.1016/j.jclepro.2025.145647
11.
DabbousA.BarakatK. A.KrausS. (2023). The impact of digitalization on entrepreneurial activity and sustainable competitiveness: A panel data analysis. Technology in Society, 73, Article 102224. https://doi.org/10.1016/j.techsoc.2023.102224
12.
DelgoshaM. S.SahebT.HajiheydariN. (2021). Modelling the asymmetrical relationships between digitalisation and sustainable competitiveness: A cross-country configurational analysis. Information Systems Frontiers, 23(5), 1317–1337. https://doi.org/10.1007/s10796-020-10029-0
13.
del Mar Alonso-AlmeidaM.GiglioC.IazzolinoG. (2024). A cross-country analysis of decision-making factors influencing tourists’ shift towards circular destinations in EU-27. Socio-Economic Planning Sciences, 94, Article 101955. https://doi.org/10.1016/j.seps.2024.101955
14.
De RosaM.GainsfordK.PallonettoF.FinnD. P. (2022). Diversification, concentration, and renewability of the energy supply in the European union. Energy, 253, Article 124097. https://doi.org/10.1016/j.energy.2022.124097
15.
DespotovicD.CvetanovicS.NedicV.DespotovicM. (2016). Economic, social, and environmental dimension of sustainable competitiveness of European countries. Journal of Environmental Planning and Management, 59(9), 1656–1678. https://doi.org/10.1080/09640568.2015.1085370
16.
DhaouiI. (2022). E-government for sustainable development: Evidence from MENA countries. Journal of the Knowledge Economy, 13(3), 2070–2099. https://doi.org/10.1007/s13132-021-00791-0
17.
DistefanoT.LodiL.BiggeriM. (2024). Material footprint and import dependency in EU27: Past trends and future challenges. Journal of Cleaner Production, 472, Article 143384. https://doi.org/10.1016/j.jclepro.2024.143384
18.
DolgeK.BlumbergaD. (2021). Economic growth in contrast to GHG emission reduction measures in green deal context. Ecological Indicators, 130, Article 108153. https://doi.org/10.1016/j.ecolind.2021.108153
19.
ElkingtonJ. (1994). Towards the sustainable corporation: Win-win-win business strategies for sustainable development. California Management Review, 36(2), 90–100. https://doi.org/10.2307/41165746
20.
Espinoza-AudeloL. F. (2020). Situación actual de la competitividad y sustentabilidad y el COVID-19. Inquietud Empresarial, 20(2), 1–3. https://doi.org/10.19053/01211048.12119
21.
European Commission. (2019). The European green deal.
FernándezY. F.LópezM. F.BlancoB. O. (2018). Innovation for sustainability: The impact of R&D spending on CO2 emissions. Journal of Cleaner Production, 172, 3459–3467. https://doi.org/10.1016/j.jclepro.2017.11.001
27.
FerranteL.ScandurraF. (2025). I want to be green! the role of social engagement in a circular economy transition. Journal of Policy Modeling. https://doi.org/10.1016/j.jpolmod.2025.05.004
28.
FurquimF.CorralD.HillmanN. (2019). A primer for interpreting and designing difference-in-differences studies in higher education research. Higher Education: Handbook of Theory and Research, 35, 1–58. https://doi.org/10.1007/978-3-030-31365-4_5
29.
GaribaM. I.RehmanF. U.ProkopV.GiglioC. (2024). Be digital to be sustainable! the mediating role of sustainable supply chain practices in triggering the effects of digitalisation on sustainable development goals in the European union. Oeconomia Copernicana, 15(4). https://doi.org/10.24136/oc.3026
30.
GiannettiB. F.AgostinhoF.ErasJ. C.YangZ.AlmeidaC. M. V. B. (2020). Cleaner production for achieving the sustainable development goals. Journal of Cleaner Production, 271, Article 122127. https://doi.org/10.1016/j.jclepro.2020.122127
31.
GüneyT. (2021). Renewable energy and sustainable development: Evidence from OECD countries. Environmental Progress & Sustainable Energy, 40(4), Article e13609. https://doi.org/10.1002/ep.13609
32.
GuoJ.LiW.LiC.GaoS. (2012). Standardization of interval symbolic data based on the empirical descriptive statistics. Computational Statistics & Data Analysis, 56(3), 602–610. https://doi.org/10.1016/j.csda.2011.09.006
33.
HassanS. T.BalochM. A.TararZ. H. (2020). Is nuclear energy a better alternative for mitigating CO2 emissions in BRICS countries? An empirical analysis. Nuclear Engineering and Technology, 52(12), 2969–2974. https://doi.org/10.1016/j.net.2020.05.016
34.
KarmanA.ProkopV.GiglioC.RehmanF. U. (2024). Has the COVID‐19 pandemic jeopardized firms’ environmental behavior? Bridging green initiatives and firm value through the triple bottom line approach. Corporate Social Responsibility and Environmental Management, 31(1), 375–395. https://doi.org/10.1002/csr.2575
35.
KhanI.HouF. (2021). The impact of socio-economic and environmental sustainability on CO2 emissions: A novel framework for thirty IEA countries. Social Indicators Research, 155(3), 1045–1076. https://doi.org/10.1007/s11205-021-02629-3
36.
KorhonenJ.NuurC.FeldmannA.BirkieS. E. (2018). Circular economy as an essentially contested concept. Journal of Cleaner Production, 175, 544–552. https://doi.org/10.1016/j.jclepro.2017.12.111
37.
KougiasI.TaylorN.KakoulakiG.Jäger-WaldauA. (2021). The role of photovoltaics for the European green deal and the recovery plan. Renewable and Sustainable Energy Reviews, 144, Article 111017. https://doi.org/10.1016/j.rser.2021.111017
38.
KoutroukisT.ChatzinikolaouD.VladosC.PistikouV. (2022). The post-COVID-19 era, fourth industrial revolution, and new globalization: Restructured labor relations and organizational adaptation. Societies, 12(6), 187. https://doi.org/10.3390/soc12060187
39.
LauC. K.PalS.MahalikM. K.GozgorG. (2022). Economic globalization convergence in high and low globalized developing economies: Implications for the post-COVID-19 era. Economic Analysis and Policy, 76, 1027–1039. https://doi.org/10.1016/j.eap.2022.10.013
40.
MengK.ZhongK.AbbasS.SofuoğluE.OlawunmiI. K.SinhaA. (2023). To import or not to import: A global comparative study of energy and natural resource policies for sustainable development. Journal of Cleaner Production, 421, Article 138490. https://doi.org/10.1016/j.jclepro.2023.138490
41.
MoreaD.IazzolinoG.GiglioC.BruniM. E.BaldissarroG.FarinelliE. (2025). The role of digitalization and ESG on financial performance: An empirical analysis on the energy and utilities sectors. PloS One, 20(2), Article e0314078. https://doi.org/10.1371/journal.pone.0314078
42.
NguyenK. H.KakinakaM. (2019). Renewable energy consumption, carbon emissions, and development stages: Some evidence from panel cointegration analysis. Renewable Energy, 132, 1049–1057. https://doi.org/10.1016/j.renene.2018.08.069
43.
NoorM.KhanD.KhanA.RasheedN. (2024). The impact of renewable and non-renewable energy on sustainable development in South Asia. Environment, Development and Sustainability, 26(6), 14621–14638. https://doi.org/10.1007/s10668-023-03210-3
44.
NowakA.KasztelanA. (2022). Economic competitiveness vs. green competitiveness of agriculture in the European union countries. Oeconomia Copernicana, 13(2), 379–405. https://doi.org/10.24136/oc.2022.012
45.
ObradovićS.LojanicaN. (2018). Does environmental quality reflect on national competitiveness? The evidence from EU-15. Energy & Environment, 29(8), 1359–1376. https://doi.org/10.1177/0958305X18813596
46.
OlczykM.Kuc-CzarneckaM. (2025). European green deal index: A new composite tool for monitoring European Union’s green deal strategy. Journal of Cleaner Production, 495, Article 145077. https://doi.org/10.1016/j.jclepro.2025.145077
47.
ØstergaardP. A.DuićN.NoorollahiY.KalogirouS. (2023). Advances in renewable energy for sustainable development. Renewable Energy, 219(1), 1145–1152. https://doi.org/10.1016/j.renene.2023.119377
48.
PaleariS. (2022). The impact of the european green deal on EU environmental policy. The Journal of Environment & Development, 31(2), 196–220. https://doi.org/10.1177/10704965221082222
49.
PopescuG. H.SimaV.NicaE.GheorgheI. G. (2017). Measuring sustainable competitiveness in contemporary economies—Insights from European economy. Sustainability, 9(7), 1230. https://doi.org/10.3390/su9071230
50.
ProkopV.RehmanF. U.KarmanA.GiglioC.DmytrenkoD.HojnikJ. (2025). When you find the opportunity in negative environmental impacts: A look at firms' responses, performance and innovativeness. Corporate Social Responsibility and Environmental Management, 32(4), 1–14. https://doi.org/10.1002/csr.3245
51.
PuertasR.Guaita-MartinezJ. M.CarracedoP.Ribeiro-SorianoD. (2022). Analysis of European environmental policies: Improving decision making through eco-efficiency. Technology in Society, 70, Article 102053. https://doi.org/10.1016/j.techsoc.2022.102053
52.
QaziA.Al-MhdawiM. K. S. (2024). Exploring the relative importance of sustainable competitiveness pillars. Journal of Cleaner Production, 443, Article 140986. https://doi.org/10.1016/j.jclepro.2024.140986
53.
ShabaltinaL. V.KarbekovaA. B.MilkinaE.PushkarevI. Y. (2021). The social impact of the downturn in business and the new context of sustainable development in the context of the 2020 economic crisis in developing countries. Modern Global Economic System: Evolutional Development vs. Revolutionary Leap, 11, 74–82. https://doi.org/10.1007/978-3-030-69415-9_9
54.
ShahbazM.ZakariaM.ShahzadS. J. H.MahalikM. K. (2018). The energy consumption and economic growth nexus in top ten energy-consuming countries: Fresh evidence from using the quantile-on-quantile approach. Energy Economics, 71, 282–301. https://doi.org/10.1016/j.eneco.2018.02.023
SimionescuM.PăunaC. B.DiaconescuT. (2020). Renewable energy and economic performance in the context of the European green deal. Energies, 13(23), 6440. https://doi.org/10.3390/en13236440
57.
SluskyD. J. G. (2017). Significant placebo results in difference-in-differences analysis: The case of the ACA’s parental mandate. Eastern Economic Journal, 43(4), 580–603. https://doi.org/10.1057/eej.2015.49
58.
SmithL. V.TaruiN.YamagataT. (2021). Assessing the impact of COVID-19 on global fossil fuel consumption and CO2 emissions. Energy Economics, 97, Article 105170. https://doi.org/10.1016/j.eneco.2021.105170
SueyoshiT.WangD. D. (2020). Rank dynamics and club convergence of sustainable development for countries around the world. Journal of Cleaner Production, 250, Article 119480. https://doi.org/10.1016/j.jclepro.2019.119480
61.
SyromyatnikovD.KonevP.PopovM.SultanovaN. (2021). Practical strategies to improve national competitiveness. Scientific Papers of the University of Pardubice, 29(2), 1315. https://doi.org/10.46585/sp29021315
62.
TorkayeshA. E.AlizadehR.SoltanisehatL.TorkayeshS. E.LundP. D. (2022). A comparative assessment of air quality across European countries using an integrated decision support model. Socio-Economic Planning Sciences, 81, Article 101198. https://doi.org/10.1016/j.seps.2021.101198
63.
TranV. H.LuN. P.LeN. T. P.DuongK. D. (2023). How do foreign direct investment and economic growth affect environmental degradation? Evidence from 47 middle-income countries. Scientific Papers of the University of Pardubice, 31(1), 1671. https://doi.org/10.46585/sp31011671
64.
UddinM. J. (2024). Climate change, vulnerabilities, and migration: Insights from ecological migrants in Bangladesh. The Journal of Environment & Development, 33(1), 50–74. https://doi.org/10.1177/10704965231211589
65.
WeiJ.RahimS.WangS. (2022). Role of environmental degradation, institutional quality, and government health expenditures for human health: Evidence from emerging seven countries. Frontiers in Public Health, 10, Article 870767. https://doi.org/10.3389/fpubh.2022.870767
66.
WenJ.OkoloC. V.UgwuokeI. C.KolaniK. (2022). Research on influencing factors of renewable energy and energy efficiency on technological innovation: Does trade, investment, and human capital development matter?Energy Policy, 160, Article 112718. https://doi.org/10.1016/j.enpol.2021.112718
67.
WingC.SimonK.Bello-GomezR. A. (2018). Designing difference-in-differences studies: Best practices for public health policy research. Annual Review of Public Health, 39(1), 453–469. https://doi.org/10.1146/annurev-publhealth-040617-013507
68.
YangB.ZhanX.TianY. (2021). Evaluation on the effect of the transformation policy of resource-exhausted cities—An empirical analysis based on the difference-in-difference model. Energy Reports, 7, 959–967. https://doi.org/10.1016/j.egyr.2021.09.177
69.
ZakeriB.PaulavetsK.Barreto-GomezL.EcheverriL. G.PachauriS.Boza-KissB.PouyaS. (2022). Pandemic, war, and global energy transitions. Energies, 15(17), 6114. https://doi.org/10.3390/en15176114
70.
ZhangD.VigneS. A. (2021). The causal effect on firm performance of China's financing–pollution emission reduction policy: Firm-level evidence. Journal of Environmental Management, 279, Article 111609. https://doi.org/10.1016/j.jenvman.2020.111609
71.
ZhouS.MatisoffD. C.KingsleyG. A.BrownM. A. (2019). Understanding renewable energy policy adoption and evolution in Europe: The impact of coercion, normative emulation, competition, and learning. Energy Research & Social Science, 51, 1–11. https://doi.org/10.1016/j.erss.2018.12.011
