Is biorefinery establishment enhancing the EU labour market on a regional level?

The deployment of biorefineries as part of the European Union’s Bioeconomy Strategy aims at contributing to the transition to a climate-neutral economy and creating jobs and growth in rural areas. In this study, we examine the impact of biorefinery establishment on the EU labour market, using the quasi-experimental method difference-in-differences (DiD) by accounting for regional characteristics at the NUTS-2 level. The findings demonstrate that introducing biorefineries to a region can create additional employment opportunities, particularly in primary production and logistics activities. However, the results do not show significant differences in regional gross value added compared with regions without biorefineries. To maximise the positive impact of biorefineries, options for a more tailored and equitable approach are suggested, taking into account regional characteristics.