Green ports or green paradox? Empirical evidence from Norwegian port municipalities

Type of the article: Research Article AbstractThis study investigates whether public investment in green maritime infrastructure and transportation projects contributes to CO₂ emission reductions in Norwegian port municipalities. Using panel data for 28 coastal municipalities from 2016 to 2023, the analysis assesses the temporal effects of maritime-supported projects, technology development (TransMar) and infrastructure (InfraMar), on local maritime emissions. A two-stage empirical strategy combines lagged panel regressions (OLS, FE, and RE) with unsupervised clustering to uncover structural heterogeneity in port activity and investment profiles. The results reveal that transport-related investments exhibit statistically significant emission-reducing effects with lags of three to five years, supporting the long-term decarbonization potential of targeted funding. In contrast, green infrastructure presence correlates positively with emissions, likely reflecting higher port activity and policy targeting in high-emission areas. Clustering analysis confirms that municipalities differ substantially in activity levels, investment patterns, and emission profiles, reinforcing the case for differentiated policy strategies. The findings contribute to environmental economics and maritime policy by offering new micro-level evidence on the effectiveness and temporal dynamics of green investments. This paper extends previous literature by integrating spatial clustering with dynamic investment modeling, providing novel insights into how policy timing and local industrial structure shape emission outcomes. The results have direct implications for designing adaptive, region-specific maritime decarbonization programs and guiding future EU-aligned infrastructure strategies.