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The role of coal consumption in the economic growth of the Polish economy in transition

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  • Gurgul, Henryk
  • Lach, Łukasz

Abstract

The main goal of this paper is an analysis of the causal links between quarterly coal consumption in the Polish economy and GDP. For the sake of accurate computation an additional variable – employment – was also taken into account. Computations conducted for the period Q1 2000 to Q4 2009 by means of recent causality techniques confirmed the neutrality of hard coal usage with respect to economic growth. On the other hand, calculations for the pairs lignite–GDP and total coal consumption–GDP showed the existence of a significant nonlinear causality from coal usage to economic growth. This is clear evidence for claiming that lignite plays an important role in the economic growth of the Polish economy. Furthermore, each coal–related variable was found to have a nonlinear causal impact on employment. Because of the relatively short length of available time series we additionally applied bootstrap critical values. The empirical results computed by both methods did not exhibit significant differences. These results have important policy implications. In general, our findings support the hypothesis that closing hard coal mines in Poland should have no significant repercussions on economic growth. However, this does not seem to be true for lignite mines.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 52235.

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Date of creation: 2011
Date of revision: 2011
Handle: RePEc:pra:mprapa:52235

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Keywords: energy consumption; economic growth; Granger causality;

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Cited by:
  1. Ozcan, Burcu, 2013. "The nexus between carbon emissions, energy consumption and economic growth in Middle East countries: A panel data analysis," Energy Policy, Elsevier, Elsevier, vol. 62(C), pages 1138-1147.
  2. Gurgul, Henryk & Lach, Łukasz, 2011. "The nexus between economic freedom and growth: Evidence from CEE countries in transition," MPRA Paper 37434, University Library of Munich, Germany.
  3. Henryk Gurgul & £ukasz Lach, 2012. "Financial Development and Economic Growth in Poland in Transition: Causality Analysis," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, Charles University Prague, Faculty of Social Sciences, vol. 62(4), pages 347-367, August.
  4. Henryk Gurgul & Łukasz Lach, 2011. "The Nexus between Improvements in Economic Freedom and Growth: Evidence from CEE Countries in Transition," Central European Journal of Economic Modelling and Econometrics, CEJEME, CEJEME, vol. 3(3), pages 133-168, September.
  5. Henryk Gurgul & Lukasz Lach, 2012. "Two deficits and economic growth: case of CEE countries in transition," Managerial Economics, AGH University of Science and Technology, Faculty of Management, AGH University of Science and Technology, Faculty of Management, vol. 12, pages 79-108.
  6. Lukasz Lach & Henryk Gurgul, 2011. "The impact of regional disparities on economic growth," Operations Research and Decisions, Wroclaw University of Technology, Institute of Organization and Management, Wroclaw University of Technology, Institute of Organization and Management, vol. 2, pages 17-43.
  7. Badera, Jarosław & Kocoń, Paweł, 2014. "Local community opinions regarding the socio-environmental aspects of lignite surface mining: Experiences from central Poland," Energy Policy, Elsevier, Elsevier, vol. 66(C), pages 507-516.

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