Regional and Environmental Classifications of the 27 EU Countries

This paper puts forward a theoretical framework for regional classifications and rankings based on the development of environmental indices. This framework can be used to classify European Union countries according to the extent to which they are influenced by supply-side (producer) and demand-side (consumer) responses to their specific bundle of economic and environmental attributes. This kind of classification is useful because it provides information about the relative attractiveness to producers and consumers of the combination of economic and environmental attributes indigenous to each region. It, therefore, has implications for the design and focus of the regional and environmental policies of the European Union. The analysis identifies 4 groups of countries with similar characteristics (high productivity, low productivity, high amenity, low amenity) and the appropriate mix of environmental and regional policies for each one of them.