Transition towards sustainable activities and firms location decisions

This paper analyses location determinants of firms at local level focusing on role played by sustainability issues in shaping these decisions. The contribution to empirical literature is the identification of specific locational patterns driving decisions of sustainability-oriented firms. This is accomplished by using data for new firm entries in Catalan municipalities between 2004 and 2014. As there is a growing pressure towards specialisation in more sustainable activities, our results proxy future trends for firms’ location patterns in many European countries.