Gaining competitive advantage through a low carbon economy: China vs Europe

Purpose - The purpose of this paper is to explore the possible developments of the energy sector in 2050. Special consideration is given to the evolution of the relationship between Europe and China. Design/methodology/approach - The paper draws on the analysis of current trends and news to develop a hypothetical scenario for the energy sector in 2050. A new hypothetical scenario is proposed in which China's role is dramatically shifted from world's largest polluter to that of leader of the green revolution. Findings - The paper suggests that the countries with the highest standards could gain a competitive advantage by imposing their standards on the other countries. In the specific scenario analyzed in the paper, China is the country that will gain such an advantage by 2050. Research limitations/implications - The paper's main limitation is the lack of estimations on the likelihood of such a hypothetical scenario. Practical implications - Practical implications of the paper are the recommendations to European Governments and agencies to take their energy policies one step forward towards low carbon solutions. Originality/value - The new perspective taken by the paper puts China under a new light and uncovers long-term strategic implications of recent trends in the energy sector.