GREEN TRANSITION AND REGIONAL INEQUALITIES: AN ANALYSIS OF THE VULNERABILITY OF URBAN AND RURAL REGIONS IN SERBIA

Abstract

The green transition, as a conceptual and strategic approach aimed at decarbonizing national economies, reducing social inequalities, and preserving natural capital, entails numerous economic and social effects in both developed and developing countries. These impacts are particularly pronounced at lower territorial levels, meaning that regions characterized by energy- and carbon-intensive activities, as well as those with lower economic diversification and unfavourable demographic characteristics, face greater vulnerability to the structural changes associated with the green transition. Taking these considerations into account, this paper examines regional inequalities in the context of the green transition in the Republic of Serbia. Its main objective is to assess whether differences in vulnerability exist between more and less developed regions, as well as between urban and rural areas, and to identify the potential drivers of such disparities. The analysis is based on the construction and application of a composite Regional Green Transition Vulnerability Index for Serbia at the NUTS 3 level. The index is developed using Principal Component Analysis (PCA) and draws on sectoral indicators covering energy, housing, transport, mining, agriculture, and tourism for 2023. The findings reveal pronounced territorial disparities and underscore the need to design green transition policies in a way that best reflects identified regional specificities. Keywords: green transition, regional vulnerability, urban regions, rural regions, NUTS 3, Serbia.