The threat of climate change and other risks for ecosystems and human health require a transition of the energy system from fossil fuels towards renewable energies and higher efficiency. The European geographical periphery, and specifically Southern Europe, has considerable potential for renewable energies. At the same time it is also stricken by high levels of public debt and unemployment, and struggles with austerity policies as consequences of the Eurozone crisis. Modeling studies find a broad optimum when searching for a cost-optimal deployment of renewable energy installations. This allows for the consideration of additional policy objectives. Simultaneously, economists argue for an increase in public expenditure to compensate for the slump in private investments and to provide economic stimulus. This paper combines these two perspectives. We assess the potential for renewable energies in the European periphery, and highlight relevant costs and barriers for a large-scale transition to a renewable energy system. We find that a European energy transition with a high-level of renewable energy installations in the periphery could act as an economic stimulus, decrease trade deficits, and possibly have positive employment effects. Our analysis also suggests that country-specific conditions and policy frameworks require member state policies to play a leading role in fostering an energy transition. This notwithstanding, a stronger European-wide coordination of regulatory frameworks and supportive funding schemes would leverage country-specific action. Renewed solidarity could be the most valuable outcome of a commonly designed and implemented European energy transition

The transportation sector is one of the largest sources of EU’s greenhouse gas emissions. In 2011, transportation represented approximately 25 percent of total EU’s greenhouse gas emissions. Urban mobility accounts for 40% of all CO2 emissions of road transport and up to 70% of other pollutants from transport. As, transportation and mobility play a crucial part both in urban economics and the quality of life, it is of great significance to ensure a low carbon transportation sector, so as to deal with the threat that climate change poses to urban areas. This study examines the factors that affect the production of carbon dioxide (CO2) as well as of air pollutants, in 9 major European cities, aiming to provide a comprehensive overview of the actual knowledge on the atmospheric pollution from public transportation systems. CO2 emissions as well as air pollutants, such as CO, HC, PM, NOx are calculated for the diesel and CNG bus fleets of the European cities under study. Finally the environmental benefits, in terms of CO2 and CO, HC, PM, NOx emissions reductions, from the penetration of different biodiesel blends (from B10 to B100) to the bus fleets are estimated.Peer ReviewedPostprint (author's final draft