IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v16y2023i2p994-d1037300.html
   My bibliography  Save this article

The Cost of Using Gas as a Transition Fuel in the Transition to Low-Carbon Energy: The Case Study of Poland and Selected European Countries

Author

Listed:
  • Grzegorz Zych

    (Department of Law and Insurance, College of Finance, University of Economics Katowice, 40-287 Katowice, Poland)

  • Jakub Bronicki

    (Doctoral School, Warsaw School of Economics, 02-554 Warszawa, Poland)

  • Marzena Czarnecka

    (Department of Law and Insurance, College of Finance, University of Economics Katowice, 40-287 Katowice, Poland)

  • Grzegorz Kinelski

    (Department of Management, WSB University, 41-300 Dąbrowa Górnicza, Poland)

  • Jacek Kamiński

    (Mineral and Energy Economy Research Institute of the Polish Academy of Sciences, 31-261 Krakoéw, Poland)

Abstract

The purpose of this article is to answer the question of whether it is economically justified to use natural gas as an interim fuel on the way to creating a low-emission energy sector from the perspective of Poland in comparison to other countries in the European Community. Despite the existence of numerous scientific studies concerning natural gas as a ‘bridge’ fuel, there is a lack of precise references to the situation of Poland in this respect, especially considering its specific situation in the historical development of energy, as well as the ongoing energy crisis caused by the Russia–Ukraine war. The study suggests that from Poland’s point of view, given the changes in natural gas prices resulting from a series of events of an international nature, gas investments are not economically justified in the economic climate (NPV of −891 million EUR) at present and will not be justified in the event of their anticipated changes (NPV of −691 million EUR), having its justification only in the presence of unlikely global changes (NPV of 2.37 billion EUR).

Suggested Citation

  • Grzegorz Zych & Jakub Bronicki & Marzena Czarnecka & Grzegorz Kinelski & Jacek Kamiński, 2023. "The Cost of Using Gas as a Transition Fuel in the Transition to Low-Carbon Energy: The Case Study of Poland and Selected European Countries," Energies, MDPI, vol. 16(2), pages 1-13, January.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:2:p:994-:d:1037300
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/16/2/994/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/16/2/994/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Krzysztof Dmytrów & Joanna Landmesser & Beata Bieszk-Stolorz, 2021. "The Connections between COVID-19 and the Energy Commodities Prices: Evidence through the Dynamic Time Warping Method," Energies, MDPI, vol. 14(13), pages 1-23, July.
    2. Huang, Yu Wen & Kittner, Noah & Kammen, Daniel M., 2019. "ASEAN grid flexibility: Preparedness for grid integration of renewable energy," Energy Policy, Elsevier, vol. 128(C), pages 711-726.
    3. Kenneth Gillingham & Pei Huang, 2019. "Is Abundant Natural Gas a Bridge to a Low-carbon Future or a Dead-end?," The Energy Journal, , vol. 40(2), pages 1-26, March.
    4. Li, Zhi-Guo & Cheng, Han & Gu, Tian-Yao, 2019. "Research on dynamic relationship between natural gas consumption and economic growth in China," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 334-339.
    5. Daniel Mara & Silviu Nate & Andriy Stavytskyy & Ganna Kharlamova, 2022. "The Place of Energy Security in the National Security Framework: An Assessment Approach," Energies, MDPI, vol. 15(2), pages 1-29, January.
    6. Marcin Malec & Grzegorz Kinelski & Marzena Czarnecka, 2021. "The Impact of COVID-19 on Electricity Demand Profiles: A Case Study of Selected Business Clients in Poland," Energies, MDPI, vol. 14(17), pages 1-17, August.
    7. Gils, Hans Christian & Gardian, Hedda & Schmugge, Jens, 2021. "Interaction of hydrogen infrastructures with other sector coupling options towards a zero-emission energy system in Germany," Renewable Energy, Elsevier, vol. 180(C), pages 140-156.
    8. Cotton, Matthew & Rattle, Imogen & Van Alstine, James, 2014. "Shale gas policy in the United Kingdom: An argumentative discourse analysis," Energy Policy, Elsevier, vol. 73(C), pages 427-438.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eva M. Urbano & Konstantinos Kampouropoulos & Luis Romeral, 2023. "Energy Crisis in Europe: The European Union’s Objectives and Countries’ Policy Trends—New Transition Paths?," Energies, MDPI, vol. 16(16), pages 1-23, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Indre Siksnelyte-Butkiene, 2021. "Impact of the COVID-19 Pandemic to the Sustainability of the Energy Sector," Sustainability, MDPI, vol. 13(23), pages 1-19, November.
    2. Jacek Artur Strojny & Michał Stanisław Chwastek & Elżbieta Badach & Sławomir Jacek Lisek & Piotr Kacorzyk, 2022. "Impacts of COVID-19 on Energy Expenditures of Local Self-Government Units in Poland," Energies, MDPI, vol. 15(4), pages 1-25, February.
    3. Gils, Hans Christian & Gardian, Hedda & Kittel, Martin & Schill, Wolf-Peter & Zerrahn, Alexander & Murmann, Alexander & Launer, Jann & Fehler, Alexander & Gaumnitz, Felix & van Ouwerkerk, Jonas & Bußa, 2022. "Modeling flexibility in energy systems — comparison of power sector models based on simplified test cases," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    4. Magazzino, Cosimo & Mele, Marco & Schneider, Nicolas, 2021. "A D2C algorithm on the natural gas consumption and economic growth: Challenges faced by Germany and Japan," Energy, Elsevier, vol. 219(C).
    5. Junlakarn, Siripha & Kittner, Noah & Tongsopit, Sopitsuda & Saelim, Supawan, 2021. "A cross-country comparison of compensation mechanisms for distributed photovoltaics in the Philippines, Thailand, and Vietnam," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    6. Norbert Bajkó & Zsolt Fülöp & Kinga Nagyné Pércsi, 2022. "Changes in the Innovation- and Marketing-Habits of Family SMEs in the Foodstuffs Industry, Caused by the Coronavirus Pandemic in Hungary," Sustainability, MDPI, vol. 14(5), pages 1-17, March.
    7. Tanya Heikkila & Christopher M. Weible, 2017. "Unpacking the intensity of policy conflict: a study of Colorado’s oil and gas subsystem," Policy Sciences, Springer;Society of Policy Sciences, vol. 50(2), pages 179-193, June.
    8. Wei Chen & Yongle Tian & Kaiming Zheng & Nana Wan, 2023. "Influences of mechanisms on investment in renewable energy storage equipment," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(11), pages 12569-12595, November.
    9. Shuguang Liu & Jiayi Wang & Yin Long, 2023. "Research into the Spatiotemporal Characteristics and Influencing Factors of Technological Innovation in China’s Natural Gas Industry from the Perspective of Energy Transition," Sustainability, MDPI, vol. 15(9), pages 1-34, April.
    10. Grzegorz Kinelski & Jakub Stęchły & Piotr Bartkowiak, 2022. "Various Facets of Sustainable Smart City Management: Selected Examples from Polish Metropolitan Areas," Energies, MDPI, vol. 15(9), pages 1-23, April.
    11. Anatolii Nikitin & Oleksandr Tarasenko & Oleksandr Dubenko, 2022. "Legal And Economic Foundations Of The National Security Of Ukraine: State And Prospects," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 8(3).
    12. Prest, Brian C., 2020. "Supply-Side Reforms to Oil and Gas Production on Federal Lands: Modeling the Implications for Climate Emissions, Revenues, and Production Shifts," RFF Working Paper Series 20-16, Resources for the Future.
    13. Zhou, Zhongbing & Qin, Quande, 2020. "Epistemological dominance and ignorance of the comparative advantages of China's shale gas: Evidence from international scientific journals," Energy Policy, Elsevier, vol. 138(C).
    14. Abdulrasheed Zakari & Jurij Toplak & Luka Martin Tomažič, 2022. "Exploring the Relationship between Energy and Food Security in Africa with Instrumental Variables Analysis," Energies, MDPI, vol. 15(15), pages 1-14, July.
    15. Khairul Eahsun Fahim & Liyanage C. De Silva & Fayaz Hussain & Sk. A. Shezan & Hayati Yassin, 2023. "An Evaluation of ASEAN Renewable Energy Path to Carbon Neutrality," Sustainability, MDPI, vol. 15(8), pages 1-27, April.
    16. Zaffar Ahmed Shaikh & Polina Datsyuk & Laura M. Baitenova & Larisa Belinskaja & Natalia Ivolgina & Gulmira Rysmakhanova & Tomonobu Senjyu, 2022. "Effect of the COVID-19 Pandemic on Renewable Energy Firm’s Profitability and Capitalization," Sustainability, MDPI, vol. 14(11), pages 1-15, June.
    17. Jiang, Hongdian & Dong, Xiucheng & Jiang, Qingzhe & Dong, Kangyin, 2020. "What drives China's natural gas consumption? Analysis of national and regional estimates," Energy Economics, Elsevier, vol. 87(C).
    18. Shi, Xunpeng & Yao, Lixia, 2020. "Economic Integration in Southeast Asia: The Case of the ASEAN Power Grid," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 35(1), pages 152-171.
    19. Adam Zając & Rafał Balina & Dariusz Kowalski, 2023. "Financial and Economic Stability of Energy Sector Enterprises as a Condition for Poland’s Energy Security—Legal and Economic Aspects," Energies, MDPI, vol. 16(3), pages 1-12, February.
    20. Kenneth Gillingham & Marten Ovaere & Stephanie Weber, 2021. "Carbon Policy and the Emissions Implications of Electric Vehicles," CESifo Working Paper Series 8974, CESifo.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:16:y:2023:i:2:p:994-:d:1037300. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.