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(Not So) Stranded: The Case of Coal in Poland

Author

Listed:
  • Waldemar Karpa

    (Economics Department, Kozminski University, 03-301 Warsaw, Poland)

  • Antonio Grginović

    (Economics Department, Kozminski University, 03-301 Warsaw, Poland
    PhD candidate.)

Abstract

This paper provides an evaluation of the stranding risks of coal in Poland. Combining an industrial organization and financial analysis approach, we assess the current economic situation of companies operating within the coal industry and draft forecasts for the future. Based on the global economic outlook for coal, we claim that phasing-out coal will take at least two decades, due to the slow transformation of the energy sector and increasing energy demand. The financial evaluation of coal-dependent companies revealed sound financial conditions due to favorable trends in coal prices in international markets. Therefore, instead of prioritizing a rapid phasing-out of coal, we pledge to make more technological investments that would make burning coal less harmful for the planet and thus efficiently mitigate the negative effects of climate change.

Suggested Citation

  • Waldemar Karpa & Antonio Grginović, 2021. "(Not So) Stranded: The Case of Coal in Poland," Energies, MDPI, vol. 14(24), pages 1-16, December.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:24:p:8476-:d:703111
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    References listed on IDEAS

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