Energy prices have only minimal impact on Europe’s economic competitiveness, new research reveals.

While some commentators have used the need to stay competitive as an argument against a strong 2030 climate and energy framework, this research shows that Europe’s competitiveness depends more on innovation than on low energy costs.

The study was conducted by Grantham Research Institute, DIW Berlin and IDDRI.

“For the vast majority of companies, energy prices have little impact on their choice of location or on their competitiveness,” says an Ends Europe article. A Reuters article also supported this revelation.

In addition, European Commission research[1] has proven that the historically higher energy prices in Europe have led to European companies becoming far more energy efficient than their foreign competitors.