Investments into new green production facilities can occur in two ways. Option 1: plants are constructed in RE-scarce regions, where (grey) industrial production is located today, hence reinforcing the status quo (left circle). Option 2: plants are constructed in new RE-rich regions, where no or little industrial production takes place today, hence resulting in green relocation (right circle). The construction of such facilities is determined by private investment decisions, which are influenced by several incentivizing and inhibiting soft and hard factors. The renewables pull is only one of these factors and we estimate it quantitatively together with transport and financing penalties. Green relocation also comes with societal risks and opportunities, which however only translate into factors influencing private investment decisions via regulatory intervention.
