Is social capital a driver of the Green Transition in European Regions?

The green transition is a topic of great interest for European policymakers. It is widely acknowledged that socio-cultural elements embedded in societies, such as social capital, significantly influence environmental performance. European regions differ greatly in both social capital and environmental behavior; however, studies at the sub-national level remain scarce. This paper examines the impact of social capital on air quality—an essential indicator of environmental performance—using data from 230 regions of the European Union in 2021. The findings demonstrate a positive effect of social capital, which remains robust across various model specifications and accounts for endogeneity. Potential transmission mechanisms are also explored, showing that the benefits of social capital are mediated through better quality of governance and stricter environmental policies. These results suggest that regional social capital endowments can play a critical role in fostering a green transition that is equitable across European regions.