IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v17y2024i11p2761-d1409026.html
   My bibliography  Save this article

The Significance of the Financial Situation of Local Government Units for Their Energy Transition Activities: The Case of the Podkarpackie Region

Author

Listed:
  • Ryszard Kata

    (Institute of Economics and Finance, University of Rzeszow, Cwiklinskiej 2, 35-601 Rzeszow, Poland)

  • Magdalena Cyrek

    (Institute of Economics and Finance, University of Rzeszow, Cwiklinskiej 2, 35-601 Rzeszow, Poland)

  • Małgorzata Wosiek

    (Institute of Economics and Finance, University of Rzeszow, Cwiklinskiej 2, 35-601 Rzeszow, Poland)

Abstract

This paper discusses the financial determinants of the efforts of local government units (LGUs) to invest in the area of energy transition (ET). The main objective is to verify the links between the scale, directions, and funding sources of LGUs’ investments in ET and their budgetary situation described by the level of income independence, budget result, and debt level. The general research hypothesis assumes that the ET investment activity of LGUs is associated with their financial situation. The analysis covers the period 2019–2022 and uses data from the questionnaire-based survey conducted in 2023 among 181 LGUs in the Podkarpackie region in southern Poland. Non-parametric tests were employed to verify the association between the LGUs’ ET investment activity and their financial situation: the Chi 2 test, the Mann–Whitney U test, the Kruskal–Wallis test, and the Kendall’s Tau correlation. Financial aspects were shown to influence the scale of municipal ET investments, as well as the type of projects implemented. Among the analysed financial indicators, the debt level was the most important constraint for LGUs to make their own ET investments. The debt level not only determined the scale of municipal ET investment, but also influenced decisions on the type of investments.

Suggested Citation

  • Ryszard Kata & Magdalena Cyrek & Małgorzata Wosiek, 2024. "The Significance of the Financial Situation of Local Government Units for Their Energy Transition Activities: The Case of the Podkarpackie Region," Energies, MDPI, vol. 17(11), pages 1-23, June.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:11:p:2761-:d:1409026
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/17/11/2761/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/17/11/2761/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Johann Bröthaler & Michael Getzner & Gottfried Haber, 2015. "Sustainability of local government debt: a case study of Austrian municipalities," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 42(3), pages 521-546, August.
    2. Agnieszka Kopańska & Roman Asinski, 2019. "Fiscal and political determinants of local government involvement in public-private partnership (PPP)," Local Government Studies, Taylor & Francis Journals, vol. 45(6), pages 957-976, November.
    3. Kerr, Sandy & Johnson, Kate & Weir, Stephanie, 2017. "Understanding community benefit payments from renewable energy development," Energy Policy, Elsevier, vol. 105(C), pages 202-211.
    4. Friedrich Heinemann, 2006. "Factor mobility, government debt and the decline in public investment," International Economics and Economic Policy, Springer, vol. 3(1), pages 11-26, April.
    5. Monika Banaszewska, 2018. "The determinants of local public investments in Poland," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 13(1), pages 105-121, March.
    6. Yaqoot, Mohammed & Diwan, Parag & Kandpal, Tara C., 2016. "Review of barriers to the dissemination of decentralized renewable energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 477-490.
    7. Jasminka Young & Aleksandar Macura, 2023. "Forging Local Energy Transition in the Most Carbon-Intensive European Region of the Western Balkans," Energies, MDPI, vol. 16(4), pages 1-29, February.
    8. Feng, Yanchao & Zhang, Juan & Geng, Yong & Jin, Shurui & Zhu, Ziyi & Liang, Zhou, 2023. "Explaining and modeling the reduction effect of low-carbon energy transition on energy intensity: Empirical evidence from global data," Energy, Elsevier, vol. 281(C).
    9. Tian, Jinfang & Yu, Longguang & Xue, Rui & Zhuang, Shan & Shan, Yuli, 2022. "Global low-carbon energy transition in the post-COVID-19 era," Applied Energy, Elsevier, vol. 307(C).
    Full references (including those not matched with items on IDEAS)

    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. Ibrahim Ari & Muammer Koc, 2018. "Sustainable Financing for Sustainable Development: Understanding the Interrelations between Public Investment and Sovereign Debt," Sustainability, MDPI, vol. 10(11), pages 1-25, October.
    2. repec:zbw:rwirep:0557 is not listed on IDEAS
    3. Köppl–Turyna, Monika & Pitlik, Hans, 2018. "Do equalization payments affect subnational borrowing? Evidence from regression discontinuity," European Journal of Political Economy, Elsevier, vol. 53(C), pages 84-108.
    4. Eid Gul & Giorgio Baldinelli & Pietro Bartocci, 2022. "Energy Transition: Renewable Energy-Based Combined Heat and Power Optimization Model for Distributed Communities," Energies, MDPI, vol. 15(18), pages 1-18, September.
    5. Ahmed, Gaffer & Kishore, Nanda, 2024. "Synergistic effects on properties of biofuel and biochar produced through co-feed pyrolysis of Erythrina indica and Azadirachta indica biomass," Renewable Energy, Elsevier, vol. 227(C).
    6. Vaidyanathan, Geeta & Sankaranarayanan, Ramani & Yap, Nonita T., 2019. "Bridging the chasm – Diffusion of energy innovations in poor infrastructure starved communities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 99(C), pages 243-255.
    7. Wang, Jianjun & Liu, Fang & Li, Li & Zhang, Jian, 2022. "More than innovativeness: Comparing residents’ motivations for participating renewable energy communities in different innovation segments," Renewable Energy, Elsevier, vol. 197(C), pages 552-563.
    8. Dong, Xianjing & Zhang, Xiaojuan & Zhang, Congcong & Bi, Chunyu, 2023. "Building sustainability education for green recovery in the energy resource sector: A cross country analysis," Resources Policy, Elsevier, vol. 81(C).
    9. Agata Sudolska & Justyna Łapińska, 2020. "Exploring Determinants of Innovation Capability in Manufacturing Companies Operating in Poland," Sustainability, MDPI, vol. 12(17), pages 1-21, August.
    10. Róbert Csalódi & Tímea Czvetkó & Viktor Sebestyén & János Abonyi, 2022. "Sectoral Analysis of Energy Transition Paths and Greenhouse Gas Emissions," Energies, MDPI, vol. 15(21), pages 1-26, October.
    11. Djati Wibowo Djamari & Muhammad Idris & Permana Andi Paristiawan & Muhammad Mujtaba Abbas & Olusegun David Samuel & Manzoore Elahi M. Soudagar & Safarudin Gazali Herawan & Davannendran Chandran & Abdu, 2022. "Diesel Spray: Development of Spray in Diesel Engine," Sustainability, MDPI, vol. 14(23), pages 1-22, November.
    12. Baruah, Debendra Chandra & Enweremadu, Christopher Chintua, 2019. "Prospects of decentralized renewable energy to improve energy access: A resource-inventory-based analysis of South Africa," Renewable and Sustainable Energy Reviews, Elsevier, vol. 103(C), pages 328-341.
    13. Lejla Terzić, 2024. "An investigation of the interlinkages between green growth dimensions, the energy trilemma, and sustainable development goals: Evidence from G7 and E7 economies," Ekonomista, Polskie Towarzystwo Ekonomiczne, issue 1, pages 24-53.
    14. Murshed, Muntasir, 2019. "Trade Liberalization Policies and Renewable Energy Transition in Low and Middle-Income Countries? An Instrumental Variable Approach," MPRA Paper 97075, University Library of Munich, Germany.
    15. Johansen, Katinka, 2021. "Blowing in the wind: A brief history of wind energy and wind power technologies in Denmark," Energy Policy, Elsevier, vol. 152(C).
    16. Hamed, Mohammad M. & Mohammed, Ali & Olabi, Abdul Ghani, 2023. "Renewable energy adoption decisions in Jordan's industrial sector: Statistical analysis with unobserved heterogeneity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 184(C).
    17. Joshi, Lalita & Choudhary, Deepak & Kumar, Praveen & Venkateswaran, Jayendran & Solanki, Chetan S., 2019. "Does involvement of local community ensure sustained energy access? A critical review of a solar PV technology intervention in rural India," World Development, Elsevier, vol. 122(C), pages 272-281.
    18. Chen, Jingyuan & Calabrese, Raffaella & Cowling, Marc, 2024. "Does energy efficiency of UK SMEs affect their access to finance?," Energy Economics, Elsevier, vol. 129(C).
    19. Jiang, Hou & Zhang, Xiaotong & Yao, Ling & Lu, Ning & Qin, Jun & Liu, Tang & Zhou, Chenghu, 2023. "High-resolution analysis of rooftop photovoltaic potential based on hourly generation simulations and load profiles," Applied Energy, Elsevier, vol. 348(C).
    20. Nazim Belhocine & La-Bhus Fah Jirasavetakul, 2020. "Lessons from Two Public Sector Reforms in Italy," IMF Working Papers 2020/040, International Monetary Fund.
    21. Abbas, Khizar & Han, Mengyao & Xu, Deyi & Butt, Khalid Manzoor & Baz, Khan & Cheng, Jinhua & Zhu, Yongguang & Hussain, Sanwal, 2024. "Exploring synergistic and individual causal effects of rare earth elements and renewable energy on multidimensional economic complexity for sustainable economic development," Applied Energy, Elsevier, vol. 364(C).

    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:17:y:2024:i:11:p:2761-:d:1409026. 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.