Prof. Sébastien Bourdin (p), Dr Clement Joltreau, Dr Christian Gnekpe

This article explains how circular economy (CE) practices territorialise global value chains (GVCs) by creating place-bound control points within otherwise international production networks. Drawing on two qualitative case studies in France’s construction and textile sectors, we analyse 77 semi-structured interviews (construction: 50 interviews conducted between 2022 and 2024 in Occitanie; textiles: 27 interviews conducted in 2024 across South-West France and national/EU actors), complemented by documentary sources and field notes. We ask how circular practices reconfigure chain architecture and governance, and why circular anchoring stabilises in some places but not others.

We first show where circularity reshapes chain organisation, identifying four place-sensitive CE nodes that concentrate reverse flows and localise coordination: (i) sorting and preparation, where heterogeneous inflows are graded into usable outflows; (ii) testing, assurance, and traceability, where protocols, laboratories, and audits secure liability and claims; (iii) repair and second-life retail, which bind service work and near-use logistics to local labour markets; and (iv) short remanufacture loops, where prepared inputs are transformed into components or materials for proximate users. Across both sectors, these nodes function as territorial “hinges” that convert diffuse returns into predictable, quality-assured circuits.

Second, we explain how reconfiguration unfolds through territorial intermediaries who relocate coordination from distant lead firms toward regionally embedded actors. Intermediaries operate as promoters (shaping expectations, skills, and demand), facilitators (matching supply and demand, sequencing timelines, and stabilising data routines), and enablers (aligning infrastructure, rules, and finance, including procurement and risk-sharing). Their actions lower transaction costs, make quality portable, and render exchanges insurable and financeable—conditions for moving from pilots to routine operations.

Third, we identify four structural conditions that account for uneven territorialisation outcomes: material (mass, heterogeneity, contamination risks, acceptable quality loss), capability (specialised skills, equipment, laboratories, repair know-how), governance (standards, protocols, insurance, certification, trace systems), and market (predictable local demand and matching platforms). Taken together, the findings show that circularity drives selective re-regionalisation: it does not reverse global integration, but re-centres key decision rights and value capture around place-bound nodes embedded in regional ecosystems.

Prof. Andrés J. Picazo-Tadeo, Dr. Celia Melguizo-Chá, Dr. Jesús Peiró-Palomino (p)

A key objective of the green transition is to minimise the environmental impact of human activity while ensuring sustained and inclusive economic progress. Achieving this balance is particularly challenging given the strong heterogeneity in economic structures, development levels, and environmental pressures across European territories. Efficiently allocating policy resources therefore requires accurate and policy-relevant indicators capable of capturing the complex relationship between economic performance and environmental impact. Eco-efficiency indicators provide a suitable framework for this purpose, as they assess the ability of territories to generate economic value while minimising environmental damage.

This paper computes regional eco-efficiency scores for European Union regions in 2023, focusing specifically on greenhouse gas emissions, which represent the main driver of global warming and a central target of European climate policy. Using a non-parametric frontier approach, the analysis evaluates regional performance relative to best practices within the EU. The results reveal substantial disparities both between and within countries. Nordic and Western European regions generally emerge as the most eco-efficient, while regions in Central and Eastern Europe tend to display the weakest performance. Moreover, significant within-country heterogeneity highlights the importance of adopting a regional perspective.

In a second stage, the paper investigates the determinants of regional eco-efficiency. The findings indicate that higher levels of economic development, stronger government quality, and greater social capital are associated with better eco-efficiency outcomes. In contrast, a large industrial sector negatively affects performance. These results underline the need for place-based policy interventions that promote technological upgrading, industrial diversification, and innovation, while reinforcing governance quality and social capital to support sustained improvements in eco-efficiency.

Mr Philip Ulrich (p)

Achieving climate neutrality requires deep structural change in the energy system, particularly in residential heating and renewable energy deployment. This study investigates how the socioeconomic impacts of the energy transition differ across German regions and how these variations can be assessed through an integrated, model-based framework. Linking the macroeconomic model Panta Rhei with the regional model LÄNDER and the district-level input–output model RIMES, the approach consistently captures sectoral interdependencies, regional heterogeneity, and distributional effects.
Scenario analyses for Germany compare a reference path with a climate neutrality (CN) scenario that accelerates the heat transition through more rapid diffusion of heat pumps and district heating. While the CN pathway raises national GDP by up to 0.2% in 2030 and creates about 20,000 additional jobs, regional outcomes vary systematically. Rural and peripheral districts with strong construction sectors and renewable energy potential tend to benefit more, whereas urban and industrial regions experience neutral or slightly negative relative effects. Nonetheless, the regional distribution of value added remains stable, indicating that an ambitious, investment-led transition does not exacerbate spatial inequalities.
The results demonstrate the importance of accounting for subnational diversity in energy and economic modelling. They also highlight the need for targeted regional policies—such as skills development, infrastructure investment, and support for vulnerable households—and for communicating findings through interactive, regionally accessible information systems that enable local adaptation of the energy transition.