Is the green transition economically sustainable?
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Background
Several large-scale industrial establishments are currently underway in connection with the green transition. These investments are often seen as a solution for rural and small-town regions that have previously been characterized by economic decline. However, the effects on the regional economy are complex and not fully understood.
This project aims to shed light on how these establishments affect the economy in the region. The empirical study focuses on the establishment of Northvolt Ett in Skellefteå. We focus in particular on:
- What are the economic effects? This includes effects on employment, wages, gross regional product and housing prices. How are the performance of companies, (sales, profitability and employment) dynamics (entrepreneurship and closures) and industry composition affected. Does the establishment mean that the region will become more vulnerable in the future?
- What are the effects on the local labor market? This includes effects on employment, possible displacement effects, wages, the emergence of “fly-in-fly-out” dynamics where employees live and work in different regions, and the composition of the workforce in terms of, for example, educational level.
The project is expected to provide valuable knowledge on the extent to which large industrial establishments in rural areas and smaller towns can promote long-term economic growth in these regions.
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