The Significance of Local Currencies in Achieving Sustainable Development Goals – European Experiences

Abstract

Goal – The aim of this article is to analyse the role of local currencies in building more sustainable economic systems. Research methodology – The research procedure consisted of the following elements: the analysis of literature on the subject related to local currencies and to sustainable development, the analysis of the local currencies catalogue. Comparative analysis and inductive and deductive reasoning were employed. Score/results – Local currencies in Europe are an innovative tool for supporting regional economies, which can be divided into three essential contexts: environmental, social, and economic. In the environmental context, currencies such as Chiemgauer in Germany focus on promoting local production and consumption, while simultaneously reducing the carbon footprint by limiting long-distance transportation. In the social dimension, local currencies, for example Sardex in Sardinia or Varamedí in Spain, primarily serve to combat unemployment and social exclusion. Their main goal is to integrate local businesses and communities, create networks of mutual support, and maintain capital within a given region. In the economic context, regional currencies, such as EnnsTaler in Austria concentrate on stimulating local trade and keeping money circulating within the regional economy. Originality/value – The article is an inspiring contribution to further in-depth research, while pointing out key areas and indicators that determine the effectiveness of alternative monetary systems locally.