On October 16, 2024, SDA Bocconi, in collaboration with ECCO and Agora Verkehrswende, hosted a conference titled “Technology Neutrality and the European Green Deal: Which Solutions for a Competitive EU Automotive Sector?” The event convened economists, policymakers, and industry leaders to examine the most effective strategies for crafting climate policies while simultaneously bolstering the automotive industry’s competitive transformation within Europe.
The conference delved into the economic efficacy of technologically neutral regulations, the potential market failures associated with such an approach, and the necessity of integrating specific policies to promote innovation. The discussions aimed to address the critical juncture facing the European Union as it pursues the goals of the European Green Deal and seeks to maintain the global competitiveness of its industries amidst the evolution towards green technologies. With limited public funds available, a careful approach to investment is crucial.
The Context: A Critical Time for the EU
The next several years are pivotal for achieving the objectives of the European Green Deal and ensuring that European industry remains competitive in the face of green technology advancements. Given the revised EU macroeconomic framework and the high national debt levels in many member states, public funding is scarce, necessitating strategic investment.
Within this context, the conference sought to inform the debate on investment strategies at both the national and European levels. It emphasized the need to analyze technology-neutral regulation through the lens of economic theory, critically assessing its implications for climate and industrial policies, particularly in the automotive sector. This is especially pertinent given the industry’s shift towards zero-emission technologies and the recommendations in the Letta Report on the Single market for a more unified EU industrial approach.
Conference Objectives
The primary goal of the conference was to facilitate a discussion among economists, policymakers, and industry representatives to identify the best strategies for designing climate policies while supporting the competitive transformation of the automotive industry. Key questions addressed included:
- Is a technology-neutral approach truly cost-effective?
- What are the risks of market failures associated with strong technology-neutral regulations?
- Can policies tailored to specific technologies be compatible with fostering innovation?
- What key reforms in the single market can support the competitiveness of industrial transition while meeting climate goals?
- What are the implications for European industrial policy in the automotive sector’s future?
A discussion paper, co-authored by Agora and ECCO, served as a foundation for the conference. The paper provided an economic theory-based assessment of technology-neutrality approaches for climate policies within the framework of industrial transformation toward green and net-zero technologies. It specifically considered the EU’s regulation of CO2 standards for cars and vans in the transition to zero-emission road mobility, taking into account the global market dynamics affecting the European automotive sector.
Conference Agenda and Speakers
The conference featured a distinguished lineup of speakers, including:
- Welcome Speech: Enzo Baglieri (Associate Dean, SDA Bocconi)
- Conference Introduction: Matteo Leonardi (ECCO), Christian Hochfeld (Agora Verkehrswende)
- Background Speech: Beatriz Yordi (European Commission)
- Conference Paper Presentation: Massimiliano Bienati (ECCO), Carl-Friedrich Elmer (Agora Verkehrswende)
- Discussion Panel A: Technology neutral vs. technology specific regulations
- Chair: Matteo Di Castelnuovo (SDA Bocconi)
- Speakers: Lucia Visconti Parisio (Università Milano Bicocca), Alfredo Di Tillio (Bocconi University), Daniel Gros (Bocconi University), Enrico Giovannini (Università Tor Vergata), Daniel Sperling (ITS-Davis)
- Impulse Speech: Sigrid De Vries (European Automobile Manufacturers’ Association – Acea)
- Keynote Speech: Enrico Letta (Jacques Delors Institute) – Video Message
- Discussion Panel B: Policies for a competitive automotive industry transition
- Chair: Giulio Piovaccari (Reuters News Agency)
- Speakers: Christoph Hinrichsen (Stellantis), Thomas Becker (BMW Group), Enzo Baglieri (SDA Bocconi)
- Q&A and Closing Remarks: Francesco Perrini (SDA Bocconi)
