Government ownership for Sustainability Transitions: Empirical Insights for EU Policymakers

Abstract

This discussion paper examines the role of government ownership in driving sustainability transitions within the European Union (EU). First, we shed light on the potential of government-owned enterprises for sustainability outcomes, highlighting their potential to, for instance, reduce emissions, increase sustainable waste management, and drive investment in ‘green’ technology and infrastructure. Second, we discuss the influence of political ties, corruption control, and corporate governance on sustainability performance by publicly owned firms. Depending on the context, government ownership is promising for addressing sustainability problems. Challenges such as efficient management and cross-border operations should also be addressed. Our paper provides insights for EU policymakers and stakeholders involved in sustainability transitions.