Regions and Cities at a Glance 2020 Provides a Comprehensive Assessment of How Regions and Cities Across the OECD Are Progressing in a Number of Aspects

Regions and Cities at a Glance 2020 provides a comprehensive assessment of how regions and cities across the OECD are progressing in a number of aspects

connected to economic development, health, well-being and net zero-carbon transition. In the light of the health crisis caused by the COVID-19 pandemic, the report analyses outcomes and drivers of social, economic and environmental resilience. Consult the full publication here.

OECD REGIONS AND CITIES AT A GLANCE - COUNTRY NOTE

ITALY

A. Resilient regional societies

B. Regional economic disparities and trends in productivity

C. Well-being in regions

D. Industrial transition in regions

E. Transitioning to clean energy in regions

F. Metropolitan trends in growth and sustainability

The data in this note reflect different subnational geographic levels in OECD countries: • Regions are classified on two territorial levels reflecting the administrative organisation of countries: large regions (TL2) and small regions (TL3). Small regions are classified according to their access to metropolitan areas (see https://doi.org/10.1787/b902cc00-en). • Functional urban areas consists of cities – defined as densely populated local units with at least 50 000 inhabitants – and adjacent local units connected to the city (commuting zones) in terms of commuting flows (see https://doi.org/10.1787/d58cb34d-en). Metropolitan areas refer to functional urban areas above 250 000 inhabitants. Disclaimer: https://oecdcode.org/disclaimers/territories.html

Regions and Cities at a Glance 2020 Austria country note 2  A. Resilient regional societies Lombardy and Lazio have the highest potential for remote working A1. Share of jobs amenable to remote working, 2018 Large regions (TL2, map)

LUX GBR AUS SWE CHE NLD High (>40%) ISL DNK 3540-50%-40% FRA FIN 3030-40%-35% NOR BEL 2520-30%-30% LTU EST Low (<25%) IRL GRC DEU AUT LVA SVN OECD30 PRT HRV POL ITA USA CZE HUN CAN ESP ROU SVK BGR TUR COL 0 10 20 30 40 50 %

The shares of jobs amenable to remote working in the Italian regions range from more than 35% in Lazio and Lombardy to less than 25% in Basilicata (Figure A1). Such a difference depends on the task content of occupations in the regions, which can be amenable to remote working to different extents.

Remote working requires a large part of the population to have access to fast and efficient internet connections, which are however not evenly available across Italian regions. Liguria, Apulia, Lazio and Campania have the highest fiber optic availability across large regions in Italy with more than 75% of the buildings connected to the network (Figure A2).

A2- Internet infrastructure Share of buildings connected in 2018, large TL2 regions Fiber xDSL Liguria Apulia Lazio Campania Lombardy Sicily Friuli-Venezia Giulia Emilia-Romagna Tuscany Piedmont Aosta Valley Veneto Abruzzo Marche Umbria Basilicata Calabria Province of Trento Province of Bolzano-Bozen Molise Sardinia 0 20 40 60 80 100 % Low coverage Full coverage

Figure [A1]: The lower percentage range (<25%) depicts the bottom quintile among 370 OECD and EU regions, the following ranges are based on increment of 5 percentage points. Further reading OECD (2020), Capacity to remote working can affect lockdown costs differently across places, http://www.oecd.org/coronavirus/policy-responses/capacity-for-remote-working-can-affect-lockdown-costs-differently-across-places-0e85740e/.  3 Ageing challenges regions far from metropolitan areas more strongly, especially in Central Italy The elderly dependency rate has increased in all types of regions in Italy since 2000. Regions far from metropolitan areas show the highest elderly dependency rate (38%) among different types of regions (Figure A3). In over 30% of provinces, there are three or more elders for every five persons in their working-age in 2019 (Figure A4).

A3. Elderly dependency rate A4. Elderly dependency rate, 2019 By type of small regions in Italy (TL3) Small regions (TL3)

Metropolitan regions Regions near a metropolitan area % Regions far from a metropolitan area 40

25 OECD average of regions

20 2000 2010 2019

Hospital beds per capita have decreased since 2000 in practically all regions, and they are now below the OECD average A5 - Hospital beds per 1000 inhabitants Large regions (TL2) All regions in Italy have less hospital beds ‰ per capita than the OECD average, 6 although this was not the case in 2000

(Figure A5). Regional disparities in hospital 4 beds are relatively low. The difference in the availability of hospital beds between Emilia 2

Romagna and Calabria, the regions with the Bozen

Romagna

- Ven. Giulia Ven.

highest and lowest availability, respectively, -

Emilia Bolzano

Calabria Aosta Valley Aosta Lombardy Piedmont Friuli Marche Umbria Campania

Lazio Veneto Trento Liguria Molise Abruzzo Sardinia Basilicata Apulia Tuscany OECD Italy amounted to less than one bed for every Sicily 0 1000 inhabitants in 2018. 2017 2000

Figure notes. [A3]: OECD (2019), Classification of small (TL3) regions based on metropolitan population, low density and remoteness https://doi.org/10.1787/b902cc00-en. Two-year moving averages. [A4]: Small (TL3) regions contained in large regions. TL3 regions in Italy are composed by 110 Provinces. Regions and Cities at a Glance 2020 Austria country note 4  B. Regional economic disparities and trends in productivity

Regional economic gaps have slightly increased since 2000, partially due to lower growth of the least developed regions Differences between Italian regions in terms of GDP per capita have slightly increased over the last eighteen years. A decline of the poorest regions compared to the richest ones has driven such increase. Regional disparities among small regions (i.e. provinces) remain above the median of OECD countries, with the province of Bolzano-Bozen having almost three times the GDP per capita of Calabria (Figure B1). With a productivity growth of 0.3% per year over the period 2000-18, Bolzano-Bozen is the region with the highest level of productivity in 2018, whereas Lazio, formerly a frontier region in terms of productivity in Italy, has followed a long-term decline. (Figure B2). Since the economic crisis of 2008, regions far from metropolitan areas have increased their productivity gap with metropolitan regions, whereas regions close to a metropolitan area have slightly narrowed their productivity gap, although with a reverse trend in the most recent period (Figure B3).

B1. Regional disparity in GDP per capita Top 20% richest over bottom 20% poorest regions Ratio Small regions Large regions

2018 2000 Country (number of regions considered) Note: A ratio with a value equal to 2 means that the GDP of the most developed regions accounting for 20% of the national population is twice as high as the GDP of the poorest regions accounting for 20% of the national population.

B2. Gap in regional productivity B3. Gap in productivity by type of region GDP per worker, small TL3 regions Productivity level of metropolitan regions=100 Per cent USD 95 120 000

93 110 000

100 000 91

90 000 89 80 000

87 Regions with access to a metropolitan area 70 000 Lazio (highest productivity in 2000) Regions far from a metropolitan area Campania (lowest productivity in 2000) 60 000 85

 5 C. Well-being in regions

Italy faces stark regional disparities in most well-being dimensions, with the starkest disparities in jobs and community C1 Well-being regional gap

Top region Bottom region Lazio Regions

Marche Molise Trento Bolzano-Bozen

Bolzano-Bozen top top 20% Trento Friuli- Sardinia Trento Aosta Venezia Giulia (1 to 440) to (1 Valley

Campania

middle middle 60% Calabria Umbria

Sicily

Ranking Ranking OECD of regions Molise Calabria Campania Calabria Apulia Lombardy Campania

Calabria bottom bottom 20%

Jobs Community Environment Safety Income Access to Life Civic Housing Health Education services Satisfaction Engagement

Note: Relative ranking of the regions with the best and worst outcomes in the 11 well-being dimensions, with respect to all 440 OECD regions. The eleven dimensions are ordered by decreasing regional disparities in the country. Each well-being dimension is measured by the indicators in the table below. Well-being differences across Italian regions are stark in most dimensions, except education. Italy has the largest regional disparities among OECD countries in terms of unemployment rates and the second largest disparities in terms of household income. While Calabria ranks in the bottom 5% of OECD regions in terms of both employment and unemployment rates, Bolzano-Bozen ranks in the top 25%. With respect to other OECD regions, most Italian regions have improved their relative ranking in life expectancy since 2000 and are now in the top 20% of OECD regions, with the exception of Campania, Sicily, and the Aosta Valley (Figure C1). The top performing Italian regions rank above the average of the top 20% of OECD regions in 4 out of 13 well-being indicators, particularly in terms of homicide rates and life expectancy (Figure C2).

C2. How do the top and bottom regions fare on the well-being indicators?

Country OECD Top Italian regions Average 20% regions Top 20% Bottom 20% Jobs Employment rate 15 to 64 years old (%), 2019 59.0 76.0 69.4 41.4 Unemployment rate 15 to 64 years old (%), 2019 10.2 3.3 5.6 20.7 Community Perceived social netw ork support (%), 2014-18 91.0 94.1 94.3 88.9 Environment Level of air pollution in PM 2.5 (µg/m³), 2019 19.2 7.0 11.2 21.8 Safety Homicide Rate (per 100 000 people), 2016-18 0.7 0.7 0.3 1.0 Income Disposable income per capita (in USD PPP), 2018 0 26 617 25 567 14 837 Access to services Households w ith broadband access (%), 2019 82.0 91.3 85.8 75.0 Life Satisfaction Life satisfaction (scale from 0 to 10), 2014-18 6.1 7.3 6.3 5.8 Civic engagement Voters in last national election (%), 2019 or latest year 72.9 84.2 78.4 64.8 Housing Rooms per person, 2018 0.0 2.3 1.9 1.5 Health Life Expectancy at birth (years), 2018 82.7 82.6 84.1 82.2 Age adjusted mortality rate (per 1 000 people), 2018 6.7 6.6 6.3 7.4 Education Population w ith at least upper secondary education, 25-64 year-olds (%), 2019 62.2 90.3 69.9 51.9

Note: OECD regions refer to the first administrative tier of subnational government (large regions, Territorial Level 2); Italy is composed of 21 large regions. Visualisation: https://www.oecdregionalwellbeing.org. Regions and Cities at a Glance 2020 Austria country note 6  D. Industrial transition in regions

Manufacturing employment has declined in all Italian regions since 2000

D1. Manufacturing employment share, regional gap % Highest decline Between 2000 and 2017, all 21 Italian regions Lowest decline 30 experienced a decline in the share of manufacturing employment. With a reduction of 25 8*percentage points in the share of employment

20 in manufacturing (-2% per year), Piedmont Piedmont recorded the largest decrease. However,

15 manufacturing still represents 20% of total Bolzano-Bozen employment (Figure D1). 10

Paralleling employment trends, gross value added in manufacturing have declined in all Italian regions, with higher declines in regions where manufacturing has relatively lower weight in the regional economy (Lazio, Sicily, Sardinia, Aosta Valley, Figure D2). D2. Manufacturing trends, 2000-17

Total jobs Jobs in GVA in by region manufacturing manufacturing Size of bubble represents Total regional Employment in GVA in the % value of the indicator employment as a manufacturing as manufacturing as Colours represent the share of national a share of regional a share of regional Legend 2000-17 change employment employment GVA

Lombardy 21

Lazio 20

Veneto 19

Emilia-Romagna 18

Piedmont 17

Campania 16

Tuscany 15

Sicily 14

Apulia 13

Marche 12 Liguria 11 Calabria 10 Sardinia 9 Friuli-Venezia Giulia 8 Abruzzo 7 Umbria 6 Province of Bolzano-Bozen 5 Province of Trento 4 Basilicata 3 Molise 2 Aosta Valley 1

-1 Largest bubble size represents: 19% 25% 25%

Note figure D.2. : Regions are ordered by regional employment as a share of national employment. Colour of the bubbles represents the evolution of the share over the period 2000-17 in percentage points: red: below -2 pp; orange: between -2 pp and -1 pp; yellow: between -1 pp and 0; light blue: between 0 and +1 pp; medium blue: between +1 pp and +2 pp; dark blue: above +2 pp over the period.  7 E. Transitioning to clean energy in regions

Seven Italian regions still rely on coal for the production of electricity. Lombardy, Abruzzo and Piedmont which generate 31% of Italian electricity, have abandoned the use of coal for electricity production. What is more, in 2017, Abruzzo and Lombardy produced 80% and 30% of their electricity using renewable sources, respectively. In contrast, Apulia and Lazio, which together account for 20% of electricity in Italy, were still producing, respectively, 50% and 25% of their electricity using coal (Figure E1). E1. Transition to renewable energy: electricity production, 2017

Regional share of Regional share of Greenhouse gas Electricity generation renewables in coal in emissions from (in GWh per year) electricity generation electricity generation electricity generated (%) (%) (in Ktons of CO2 eq.)

Lombardy 43 073 30% 0% 15 397 Lom. Lazio 30 582 4% 25% 16 977 Laz. Apulia 25 390 14% 50% 15 025 Apu. Abruzzo 22 770 80% 0% 2 434 Abr. Piedmont 19 320 39% 0% 5 987 Pie. Sicily 19 087 22% 0% 7 691 Sic. Emilia-Romagna 18 338 34% 0% 6 197 Emi. Veneto 17 036 34% 22% 7 599 Ven. Calabria 14 667 11% 0% 6 689 Cal. Campania 11 687 40% 0% 3 555 Cam. Tuscany 10 448 63% 0% 2 482 Tus. Liguria 9 986 0% 51% 6 564 Lig. Sardinia 9 049 25% 43% 4 797 Sar. Friuli-Venezia Giulia 5 547 25% 24% 2 522 Fri. Molise 3 872 4% 0% 1 824 Mol. Umbria 3 453 35% 17% 1 331 Umb. Province of Trento 3 375 100% 0% 81 Pro. Marche 2 534 80% 0% 311 Mar. Province of Bolzano-Bozen 1 971 100% 0% 47 Pro. Aosta Valley 729 100% 0% 17 Aos. Basilicata 405 100% 0% 13 Bas.

Carbon efficiency in electricity generation is very unequal across Italian regions. While Abruzzo releases less than 107 tons of CO2 per gigawatt hour of electricity produced, Apulia emits more than 590 tons of CO2 per gigawatt hour. For this reason, in 2017, Apulia alone accounted for 14% of Italy’s CO2 emissions from electricity production, while generating 9% of the country’s electricity (Figure E2).

E2. Contribution to total CO2 emissions from electricity production, 2017

Share of electricity production

High carbon efficiency Share of CO2 emissions Low carbon efficiency % Contribution to total electricity production Contribution to total electricity production 18 higher than contribution to CO2 emissions lower than contribution to CO2 emissions 16 14 12 10 8 6 4 2 0

Note figures E1, E2: Only 93% of the total country's electricity production is covered. Electricity production from Biomass, Waste power plants is missing.

Regions are arranged in Figure E1 by total generation, and in Figure E2 according to gap between share of electricity generation and share of CO2 emissions (most positive to most negative). These estimates refer to electricity production from the power plants connected to the national power grid, as registered in the Power Plants Database. As a result, small electricity generation facilities disconnected from the national power grid might not be captured. See here for more details. Regions and Cities at a Glance 2020 Austria country note 8  F. Metropolitan trends in growth and sustainability

Compared to the OECD average, Italy has a higher concentration of the population in small- and medium-sized cities

In Italy, 56% of the population lives in cities of more than 50 000 inhabitants and their respective commuting areas (functional urban areas, FUAs). Such a share is 19 percentage points lower than the OECD average. The share of population in metropolitan areas over half a million inhabitants is 35%, compared to 60% in the OECD area (Figure F1).

F1. Distribution of population in cities and their commuting zones by size Functional urban areas, 2018 Italy, Unitedpercentage States of population in cities Population by city size, a global view

Above Between 250 000 Between 50 000 Other settlements other settlements above % 500 000 pop. and 500 000 pop. and 250 000 pop. below 50 000 below 50 000 500 000 100

80 35% 44% 60.5 million people - 56% 60 live in cities 40 75% 64% 60% 56% 7% 20 between 250 000 35% 25% between 50 000 14% and 500 000 and 250 000 0 Italy Europe OECD (29 countries) (37 countries)

Built-up areas have increased faster than population in metropolitan areas in North- East Italy Built-up area per capita has increased in functional urban areas in Italy since 2000, especially in Venice and Padua, which are also the only Italian metropolitan areas with built-up area per capita levels above the OECD average of metropolitan areas (Figure F2).

F2. Built-up area per capita Functional urban areas with more than 500 000 inhabitants m2 per capita 2014 2000 400 300

200

100

0 Venice Padua Naples Verona Bologna Milan Rome Turin Catania Bari Florence Palermo Genoa OECD average

Source: OECD Metropolitan Database. Number of metropolitan areas with a population of over 500 000: 13 in Italy compared to 351 in the OECD.  9 Milan is the richest metropolitan area in Italy and it has increased the gap in GDP per capita with other Italian metropolitan areas since 2000 Milan metropolitan area has the highest GDP per capita in Italy (Figure F3), and is also among the top 26% of OECD metropolitan areas − with more than 500 000 people.

F3. Trends in GDP per capita in metropolitan areas Functional urban areas above 500 000 people