IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v100y2025ics0301420724008237.html
   My bibliography  Save this article

Post-restructuring productivity of the Polish hard coal mining industry. Does it create an opportunity for survival or a threat of closure?

Author

Listed:
  • Jonek-Kowalska, Izabela
  • Grebski, Wieslaw

Abstract

Decarbonization and the ban on public aid for mining companies have intensified the threat of liquidation for the Polish hard coal mining industry. Nevertheless, liquidation of hard coal mining has resulted in a significant decrease in Poland's energy security. Therefore, resolving the dilemma of survival or liquidation may depend mainly on economic conditions related to productivity and efficiency. Considering the aforementioned circumstances, this study aims to assess productivity and its determinants in the Polish hard coal mining industry from 2018 to 2023, that is, after the liquidation of permanently unprofitable mines following the recommendations of the European Union and its decarbonization policy. The study conducts an assessment of labor productivity and efficiency, as well as trend and dynamics analyses to identify the changes in employment, production, and remuneration. The results indicate lack of efficiency and productivity effects of the restructuring (average annual rate of change in the work productivity is −2.81%). Employment declines extremely slowly, and the reduction is inconsistent, while remuneration increases rapidly (over 10% annually and constitutes 38–89% of the price of 1 ton of coal) at an above-inflation rate. These observations imply an accelerated path toward the liquidation of hard coal mining in Poland. Changing such a pessimistic scenario would require a radical improvement in productivity and efficiency, which seems unlikely under the prevailing economic and geological conditions. The study contributes to the analysis of the mining industry by presenting the microeconomic (neither holistic nor econometric) approach. Furthermore, it identifies the determinants of mining productivity in emerging and developing economies. Additionally, this study draws attention to the threats to the industry resulting from ineffective restructuring activities and the separation of mining companies' operating principles from economic conditions. These are important implications for the less frequently discussed issue of mining enterprise productivity.

Suggested Citation

  • Jonek-Kowalska, Izabela & Grebski, Wieslaw, 2025. "Post-restructuring productivity of the Polish hard coal mining industry. Does it create an opportunity for survival or a threat of closure?," Resources Policy, Elsevier, vol. 100(C).
    • Handle: RePEc:eee:jrpoli:v:100:y:2025:i:c:s0301420724008237
    DOI: 10.1016/j.resourpol.2024.105456
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420724008237
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2024.105456?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Parida, Meenakshi & Madheswaran, S., 2021. "Does ownership matter? Empirical evidence from the performance of Indian state and private coal mining companies," Resources Policy, Elsevier, vol. 74(C).
    2. Brauers, Hanna & Oei, Pao-Yu, 2020. "The political economy of coal in Poland: Drivers and barriers for a shift away from fossil fuels," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 144.
    3. Blaschke, Wieslaw & Gawlik, Lidia, 1999. "Coal mining industry restructuring in Poland: implications for the domestic and international coal markets," Applied Energy, Elsevier, vol. 64(1-4), pages 453-456, September.
    4. Rodríguez, Xosé A. & Loureiro, Maria L. & Arias, Carlos, 2021. "Measuring productivity in the extractive industries. Evidence from Spanish fluorite mining," Resources Policy, Elsevier, vol. 73(C).
    5. Fernandez, Viviana, 2021. "Copper mining in Chile and its regional employment linkages," Resources Policy, Elsevier, vol. 70(C).
    6. Rybak, Aurelia & Rybak, Aleksandra, 2016. "Possible strategies for hard coal mining in Poland as a result of production function analysis," Resources Policy, Elsevier, vol. 50(C), pages 27-33.
    7. Brauers, Hanna & Oei, Pao-Yu, 2020. "The political economy of coal in Poland: Drivers and barriers for a shift away from fossil fuels," Energy Policy, Elsevier, vol. 144(C).
    8. Qing Yang & Mingbo Zheng & Yunliang Wang, 2023. "The Role of CBDC in Green Finance and Sustainable Development," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 59(15), pages 4158-4173, December.
    9. Karbownik, Andrzej & Stachowicz, Jan, 1994. "Social aspects of restructuring hard coal mining in Poland," Resources Policy, Elsevier, vol. 20(3), pages 198-201, September.
    10. David Humphreys, 2020. "Mining productivity and the fourth industrial revolution," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 33(1), pages 115-125, July.
    11. Patrycja Bąk & Marian Czesław Turek & Łukasz Bednarczyk & Izabela Jonek-Kowalska, 2024. "The Optimal Transportation Option in an Underground Hard Coal Mine: A Multi-Criteria Cost Analysis," Resources, MDPI, vol. 13(1), pages 1-26, January.
    12. Marian Czesław Turek & Łukasz Bednarczyk & Izabela Jonek-Kowalska, 2023. "Applying Utility Criteria to Select the Design Variant of the Transport System in Underground Mine Workings," Resources, MDPI, vol. 12(11), pages 1-23, November.
    13. Frankowski, Jan & Mazurkiewicz, Joanna & Sokołowski, Jakub, 2023. "Mapping the indirect employment of hard coal mining: A case study of Upper Silesia, Poland," Resources Policy, Elsevier, vol. 83(C).
    14. Izabela Jonek-Kowalska, 2015. "State Aid And Competitiveness Of The Hard Coal Mining Industry In The European Union," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 10(1), pages 69-87, March.
    15. Sofia, Daniele & Gioiella, Filomena & Lotrecchiano, Nicoletta & Giuliano, Aristide, 2020. "Cost-benefit analysis to support decarbonization scenario for 2030: A case study in Italy," Energy Policy, Elsevier, vol. 137(C).
    16. Halkos, George E. & Aslanidis, Panagiotis – Stavros C., 2023. "Sustainable energy development in an era of geopolitical multi-crisis. Applying productivity indices within institutional framework," Resources Policy, Elsevier, vol. 85(PB).
    17. Wang, Shuhong & Xing, Lu & Chen, Xueli & Song, Malin, 2024. "Evaluating and enhancing natural resource asset management efficiency in China: A data envelopment analysis study," Resources Policy, Elsevier, vol. 92(C).
    18. Izabela Jonek-Kowalska & Marian Turek, 2017. "Dependence of Total Production Costs on Production and Infrastructure Parameters in the Polish Hard Coal Mining Industry," Energies, MDPI, vol. 10(10), pages 1-22, September.
    19. Zhou, Xuming & Patel, Gupteswar & Mahalik, Mantu Kumar & Gozgor, Giray, 2024. "Effects of green energy and productivity on environmental sustainability in BRICS economies: The role of natural resources rents," Resources Policy, Elsevier, vol. 92(C).
    20. Ruba Hamed & Wasim Al-Shattarat & Faisal Mahmood & Basiem Al-Shattarat & Ahmed Hassanein, 2023. "Does corporate sustainable development still promote corporate financial performance during global crises? Empirical Study from China," Cogent Business & Management, Taylor & Francis Journals, vol. 10(1), pages 2190195-219, December.
    21. Hamit Aydin, 2020. "Fifty years of copper mining: the US labor productivity," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 33(1), pages 11-19, July.
    22. Jopp, Tobias A., 2023. "Determinants of mine closures in a declining industry: The example of West German hard-coal mining after World War Two," Economics Letters, Elsevier, vol. 226(C).
    23. Korski, Jacek & Tobór–Osadnik, Katarzyna & Wyganowska, Małgorzata, 2016. "Reasons of problems of the polish hard coal mining in connection with restructuring changes in the period 1988–2014," Resources Policy, Elsevier, vol. 48(C), pages 25-31.
    24. 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).
    25. Tatiana Ponomarenko & Marina Nevskaya & Izabela Jonek-Kowalska, 2021. "Mineral Resource Depletion Assessment: Alternatives, Problems, Results," Sustainability, MDPI, vol. 13(2), pages 1-15, January.
    26. Manowska, Anna & Osadnik, Katarzyna Tobór & Wyganowska, Małgorzata, 2017. "Economic and social aspects of restructuring Polish coal mining: Focusing on Poland and the EU," Resources Policy, Elsevier, vol. 52(C), pages 192-200.
    27. Zhu, Xuehong & Chen, Ying & Feng, Chao, 2018. "Green total factor productivity of China's mining and quarrying industry: A global data envelopment analysis," Resources Policy, Elsevier, vol. 57(C), pages 1-9.
    28. Chen, Jiabin & Wen, Shaobo & Liu, Yuchen, 2022. "Research on the efficiency of the mining industry in China from the perspective of time and space," Resources Policy, Elsevier, vol. 75(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. Jan Frankowski & Joanna Mazurkiewicz & Jakub Sokolowski, 2021. "The coal phase-out and the labour market transition pathways: the case of Poland," IBS Working Papers 01/2021, Instytut Badan Strukturalnych.
    2. Piotr Bórawski & Aneta Bełdycka-Bórawska & Lisa Holden & Tomasz Rokicki, 2022. "The Role of Renewable Energy Sources in Electricity Production in Poland and the Background of Energy Policy of the European Union at the Beginning of the COVID-19 Crisis," Energies, MDPI, vol. 15(22), pages 1-17, November.
    3. Malec, Marcin, 2022. "The prospects for decarbonisation in the context of reported resources and energy policy goals: The case of Poland," Energy Policy, Elsevier, vol. 161(C).
    4. Aurelia Rybak & Aleksandra Rybak, 2021. "Methods of Ensuring Energy Security with the Use of Hard Coal—The Case of Poland," Energies, MDPI, vol. 14(18), pages 1-25, September.
    5. Sylwia Mrozowska & Jan A. Wendt & Krzysztof Tomaszewski, 2021. "The Challenges of Poland’s Energy Transition," Energies, MDPI, vol. 14(23), pages 1-22, December.
    6. Piotr Bórawski & Aneta Bełdycka-Bórawska & Lisa Holden, 2023. "Changes in the Polish Coal Sector Economic Situation with the Background of the European Union Energy Security and Eco-Efficiency Policy," Energies, MDPI, vol. 16(2), pages 1-17, January.
    7. Ewa Chomać-Pierzecka & Hubert Gąsiński & Joanna Rogozińska-Mitrut & Dariusz Soboń & Sebastian Zupok, 2023. "Review of Selected Aspects of Wind Energy Market Development in Poland and Lithuania in the Face of Current Challenges," Energies, MDPI, vol. 16(1), pages 1-17, January.
    8. Jarosław Kaczmarek, 2022. "The Balance of Outlays and Effects of Restructuring Hard Coal Mining Companies in Terms of Energy Policy of Poland PEP 2040," Energies, MDPI, vol. 15(5), pages 1-30, March.
    9. Xiong, Yu & Kong, Dezhong & Song, Gaofeng, 2024. "Research hotspots and development trends of green coal mining: Exploring the path to sustainable development of coal mines," Resources Policy, Elsevier, vol. 92(C).
    10. Wilhelm Jan Tic & Joanna Guziałowska-Tic, 2021. "The Cost-Efficiency Analysis of a System for Improving Fine-Coal Combustion Efficiency of Power Plant Boilers," Energies, MDPI, vol. 14(14), pages 1-19, July.
    11. Izabela Jonek-Kowalska, 2018. "Method for Assessing the Development of Underground Hard Coal Mines on a Regional Basis: The Concept of Measurement and Research Results," Energies, MDPI, vol. 11(6), pages 1-23, May.
    12. Ahmad, Shabbir & Steen, John & Ali, Saleem & Valenta, Rick, 2023. "Carbon-adjusted efficiency and technology gaps in gold mining," Resources Policy, Elsevier, vol. 81(C).
    13. Alicja Kot-Niewiadomska & Krzysztof Galos & Jarosław Kamyk, 2021. "Safeguarding of Key Minerals Deposits as a Basis of Sustainable Development of Polish Economy," Resources, MDPI, vol. 10(5), pages 1-32, May.
    14. T. B. White & S. O. Petrovan & L. A. Bennun & T. Butterworth & A. P. Christie & H. Downey & S. B. Hunter & B. R. Jobson & S. O. S. E. zu Ermgassen & W. J. Sutherland, 2023. "Principles for using evidence to improve biodiversity impact mitigation by business," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4719-4733, November.
    15. Matthias Kroll & Kjell Kühne, 2024. "“Climate Bailout”: a new tool for central banks to limit the financial risk resulting from climate change," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 24(1), pages 217-232, March.
    16. Anna Manowska & Andrzej Nowrot, 2019. "The Importance of Heat Emission Caused by Global Energy Production in Terms of Climate Impact," Energies, MDPI, vol. 12(16), pages 1-12, August.
    17. Tarasova, Ekaterina, 2024. "Multiple just transitions? A study of how a just transition is envisioned in Poland," Energy Policy, Elsevier, vol. 194(C).
    18. Kateryna Redko & Olena Borychenko & Anatolii Cherniavskyi & Volodymyr Saienko & Serhii Dudnikov, 2023. "Comparative Analysis of Innovative Development Strategies of Fuel and Energy Complex of Ukraine and the EU Countries: International Experience," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 301-308, March.
    19. Myroslava Bublyk & Agnieszka Kowalska-Styczeń & Vasyl Lytvyn & Victoria Vysotska, 2021. "The Ukrainian Economy Transformation into the Circular Based on Fuzzy-Logic Cluster Analysis," Energies, MDPI, vol. 14(18), pages 1-17, September.
    20. Jonek-Kowalska, Izabela, 2024. "Demonstrating the need for a just transition: Socioeconomic diagnosis of polish cities living on hard coal mining," Resources Policy, Elsevier, vol. 89(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:eee:jrpoli:v:100:y:2025:i:c:s0301420724008237. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    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.