Impact of Transition Policies on the Economy: a Sector Specific Analysis

The work measures the impact of Environmental Policy Stringency (measured through the EPS Index) on the Labour Productivity, employing a panel data on 22 OECD European Countries, over the period 1990-2020 with a sector-specific focus. The work verifies the Porter Hypothesis which states that increasing levels in policy stringency lead to productivity gains. The Industry and Construction sectors results to be the ones benefitting the most from environmental policies. The results of this work would provide policy-makers valuable insights regarding the ability to adapt and potential challenges faced by each sector, so that policy designs can be improved in order to have a smoother economic transition.