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The Importance of Local Investments Co-Financed by the European Union in the Field of Renewable Energy Sources in Rural Areas of Poland

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  • Aldona Standar

    (Department of Economics and Economic Policy in Agribusiness, Poznań University of Life Sciences, Wojska Polskiego 28, 60-637 Poznań, Poland)

  • Agnieszka Kozera

    (Department of Finance and Accounting, Poznań University of Life Sciences, Wojska Polskiego 28, 60-637 Poznań, Poland)

  • Łukasz Satoła

    (Department of Management and Economics of Enterprises, University of Agriculture in Krakow, al. Mickiewicza 21, 31-120 Kraków, Poland)

Abstract

Local investments for the development of renewable energy sources (RESs) constitute an important element of sustainable rural development. They are conducive to the social and economic development of the said areas, and improve the environmental values and living conditions of their inhabitants. However, such advancement in rural areas is not possible without adequate financial support, including the funds from the EU budget. Therefore, the main objective of the research is to assess the scale, scope and importance of local investments in renewable energy sources in rural areas of Poland in 2014–2020, cofinanced from EU funds. The study covered 1117 projects, whose beneficiaries were rural and urban–rural municipalities. Evaluation of the municipal investment activities in acquiring EU subsidies in the area of environmentally friendly energy was conducted using selected methods of descriptive statistics and the analysis of variance. Subsequently, with the use of logistic regression, the study identified the main socioeconomic, financial and environmental conditions of the investment activities of the local government entities in RES in rural areas. Empirical studies allowed for the positive verification of the research hypothesis, which assumed that “The highest investment activity in the field of local projects co-financed from EU funds, related to the development of RES in rural areas, may be attributed to municipalities performing primarily agricultural functions, located in Eastern Poland”. The municipalities’ own income potential and investment activity are of major importance for the acquisition of EU funds used in RES financing. Municipalities at a lower development level demonstrated a greater activity in accessing these funds. They view the development of RES as an opportunity for accelerated growth.

Suggested Citation

  • Aldona Standar & Agnieszka Kozera & Łukasz Satoła, 2021. "The Importance of Local Investments Co-Financed by the European Union in the Field of Renewable Energy Sources in Rural Areas of Poland," Energies, MDPI, vol. 14(2), pages 1-23, January.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:2:p:450-:d:481229
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