Eduarda Figueiredo (p), Eduardo Haddad, Blanka Šimundić

Yishuang Xu

This study examines the distributional impacts of a carbon tax on the Croatian economy, with a particular emphasis on the tourism sector, a key driver of national economic activity. Using an inter-regional computable general equilibrium (CGE) model calibrated for 2018, the research simulates the effects of the tax across Croatia’s 21 administrative regions and 65 economic sectors. The results indicate that while the implementation of a carbon tax leads to a general price increase and a long-term reduction in GDP, it also results in a notable rise in average real wages. The most carbon-intensive sectors experience the largest contractions, whereas cleaner sectors — particularly those related to tourism — show increased production, aligning with findings from the existing literature.
The study highlights the significant impact of the tax on the transportation sector, which is essential for Croatian tourism. Air, land, and water transport experience substantial contractions in all simulation scenarios due to their high carbon intensity. Conversely, clean tourism-related activities, such as accommodation and entertainment, see a relative increase in output in the short term. The research underscores the heterogeneous nature of the tax’s effects, with regions and sectors dependent on carbon-intensive activities suffering the greatest losses, while those with cleaner economic structures, such as Adriatic and Pannonian Croatia, demonstrate stronger resilience.
Furthermore, the study evaluates the role of revenue recycling as a policy tool to mitigate adverse economic effects. By reinvesting carbon tax revenues into government and household spending, the simulations show that some of the negative impacts on GDP and employment can be alleviated. These findings suggest that well-designed fiscal policies can facilitate the transition toward a low-carbon economy while minimizing economic disruptions.
The study concludes with policy recommendations, emphasizing the need for region- and sector-specific mitigation strategies. Revenue recycling mechanisms could support affected industries and reduce regional inequalities, helping Croatia balance environmental goals with economic stability. These insights contribute to the broader discussion on carbon taxation and its implications for economies reliant on tourism and other carbon-intensive sectors.

Yishuang Xu (p), Voraprapa Nakavachara

Kevin Connolly

This study examines how headquarters location in major urban agglomerations weakens the
relationship between environmental performance (lower carbon emission intensity) and
financial performance (higher profitability) in real estate investment trusts (REITs). Analyzing
375 REITs across 21 economies from 2017 to 2023, we identify a negative, non-linear
relationship between carbon emission intensity and profitability. However, this relationship is
significantly weaker for REITs headquartered in major urban agglomerations. While
environmental performance generally enhances profitability, its impact is diminished in urban
agglomerations due to three key mechanisms: weakened environmental differentiation, higher
cost pressures, and systemic environmental challenges. In contrast, we find that REITs outside
urban agglomerations exhibit a stronger negative relationship between carbon emission
intensity and profitability, particularly driven by Scope 2 (indirect) emissions. By highlighting
the geographical determinants of corporate sustainability, this study contributes to the
discourse on spatial governance in urban agglomerations, emphasizing the need for location specific
sustainability strategies and policies.

Kevin Connolly (p), Gioele Figus, Rebekah Tait

Katarina Vitálišová

Combating climate change is a key global challenge, with many nations committing to net-zero emissions. While emission reductions are crucial, they must align with economic growth. The green transition presents an opportunity for economic expansion, particularly through "green jobs" in manufacturing and technology deployment.

Three core aspects of the green transition are decarbonising electricity, reducing heat demand, and transforming transport. Electricity generation has seen the most progress, particularly through offshore wind and solar power, which have become cost-competitive with fossil fuels. However, decarbonising heat and transport is more complex due to their diverse and individualised nature. Unlike electricity, which is produced centrally, decisions about heating and transport are often made at the household level, requiring multiple solutions.

This paper examines the economy-wide impacts of offshore wind investment and household decarbonisation using a CGE model for Northern Ireland. While many studies analyse elements of the green transition separately, this research compares two major pathways: achieving 2GW of offshore wind capacity by 2040 and implementing a household energy efficiency programme. Each scenario includes simulations of both demand and supply-side effects.

Our findings indicate that for smaller nations, household decarbonisation delivers stronger economic benefits than offshore wind. Although offshore wind requires greater investment, much of this spending occurs outside the region, limiting its local economic impact. Furthermore, offshore wind jobs tend to be short-term, benefiting only a few industries while others experience negative effects due to crowding-out. In contrast, household decarbonisation creates broader and longer-lasting economic benefits, supporting a more equitable transition.

This study’s novelty lies in its direct comparison of offshore wind and household decarbonisation in a smaller nation. Northern Ireland, like many smaller regions, faces challenges related to "local content" and lacks the expertise to manufacture offshore wind components domestically. Understanding these challenges is crucial for policymakers aiming to balance economic and environmental goals in the green transition.

Katarina Vitálišová (p), Anna Vaňová , Mária Vavrúšová, Darina Rojíková

Eduarda Figueiredo

The concept of open governance represents a modern approach to public administration, gaining increasing significance due to the progressive development of contemporary technologies. These technologies greatly facilitate access to information, its processing, and its use in decision-making processes, contributing to smarter and more transparent city and municipal management. Moreover, innovative technologies are a key element of new trends in urban development, although their application may vary depending on the specific expectations and objectives of individual municipalities.
This scientific paper explores the relationship between the implementation of the open governance approach and current trends in local development. From a theoretical perspective, the paper identifies the overlaps between open governance theory and new approaches in urban and municipal development. Special attention is given to how the principles of open governance can support sustainability, citizen participation, and the effective utilization of modern technologies in local governance.
The empirical part of the paper presents partial research results from a questionnaire survey conducted among representatives of Slovak district cities in 2024. The aim of the research was to determine the level of open governance implementation in individual cities and to identify which new trends in urban development are most supported by this approach. Based on the collected data, the paper analyses to what extent Slovak cities apply elements of open governance and how they contribute to fulfilling modern development strategies.
The findings of this study provide valuable insights into the current state of open governance implementation in Slovak cities and indicate its further potential in shaping future urban development trends. The research results can be beneficial for public administration professionals, policymakers, and city representatives seeking to introduce modern and efficient approaches to managing municipalities.