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Hard coal production in Poland in the aspect of climate and energy policy of the European Union and the war in Ukraine. Investment case study

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  • Bijańska, Jolanta
  • Wodarski, Krzysztof

Abstract

The adoption by European Union (EU) member states of a long-term vision to move toward climate neutrality implies abandoning hard coal production, temporarily using natural gas and transitioning to renewable energy and nuclear power. Along these lines, most EU countries have ceased coal production, but coal consumption has declined at a much slower rate, resulting in increased dependence on coal imports, including from Russia. In 2021, as much as 51 million tons of coal went from this country to EU countries. In 2022, in the wake of Russia's aggression against Ukraine, resulting in an embargo on Russian coal, some EU countries, mainly Poland, began to consider extending the operation of coal mines and making investments in maintaining or increasing capacity, to make up for the shortage of coal mainly for residential customers. Deciding to make such an investment is difficult, among other things because of the accompanying business risks, which the mine's management is responsible for exceeding. The publication presents a developed model for assessing the business risk of investment in maintaining or increasing coal production, the use of which makes it possible to obtain information to support rational decision-making.

Suggested Citation

  • Bijańska, Jolanta & Wodarski, Krzysztof, 2024. "Hard coal production in Poland in the aspect of climate and energy policy of the European Union and the war in Ukraine. Investment case study," Resources Policy, Elsevier, vol. 88(C).
  • Handle: RePEc:eee:jrpoli:v:88:y:2024:i:c:s0301420723011017
    DOI: 10.1016/j.resourpol.2023.104390
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    References listed on IDEAS

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    1. Magni, Carlo Alberto & Marchioni, Andrea, 2020. "Average rates of return, working capital, and NPV-consistency in project appraisal: A sensitivity analysis approach," International Journal of Production Economics, Elsevier, vol. 229(C).
    2. Martínez-García, Miguel Á. & Ramos-Carvajal, Carmen & Cámara, Ángeles, 2023. "Consequences of the energy measures derived from the war in Ukraine on the level of prices of EU countries," Resources Policy, Elsevier, vol. 86(PB).
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    Cited by:

    1. Bożena Gajdzik & Magdalena Jaciow & Kinga Hoffmann-Burdzińska & Robert Wolny & Radosław Wolniak & Wiesław Wes Grebski, 2024. "Impact of Economic Awareness on Sustainable Energy Consumption: Results of Research in a Segment of Polish Households," Energies, MDPI, vol. 17(11), pages 1-31, May.
    2. Jarosław Brodny & Magdalena Tutak & Wes Grebski, 2024. "Empirical Assessment of the Efficiency of Poland’s Energy Transition Process in the Context of Implementing the European Union’s Energy Policy," Energies, MDPI, vol. 17(11), pages 1-36, June.

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