IDEAS home Printed from https://ideas.repec.org/p/pes/wpaper/2014no32.html
   My bibliography  Save this paper

State aid and competitiveness of the hard coal mining industry in the European Union

Author

Listed:
  • Izabela Jonek-Kowalska

    () (The Silesian University of Technology, Poland)

Abstract

The hard coal mining industry in the European Union (EU) is in decline, mostly due to a lack of price competitiveness. It is maintained, to a great extent, by state aid; a key objective of the industry’s existence is to provide energy security and guarantee employment in the mining regions. In Poland, the hard coal mining industry is currently undergoing a serious crisis that threatens the two largest mining enterprises with bankruptcy. In addition, due to the European Union’s restrictions concerning the circumstances of granting state aid, these enterprises cannot count on the financial support for the repair restructuring that they used on a large scale until 2011. Therefore, in this article, the main objective is to determine the influence of state aid on the competitiveness of the hard coal mining industry in 12 countries of the EU, including Poland in specific. In order to achieve the stated objective, the article is divided into three parts. The first part consists of a literature review and legal regulations that are related to state aid for the hard coal mining industry in the EU are presented. The second part identifies the amount of state aid for the mining industry in the examined countries. Next, the influence of the state aid on the economic-financial conditions and competitiveness of the industry in the examined countries is examined. The third assesses the financial results of 24 Polish hard coal mines. The data of Eurostat and EURACOAL were used in the research. Furthermore, the primary data from the Polish mines of power hard coal were also used. The research methodology includes the indicators from the area of effectiveness and productivity assessment, as well as production quality assessment in the mining industry. The research results make it possible to extend knowledge in the range of the influence of the state on the competitiveness of the traditional industries and their restructuring.

Suggested Citation

  • Izabela Jonek-Kowalska, 2014. "State aid and competitiveness of the hard coal mining industry in the European Union," Working Papers 32/2014, Institute of Economic Research, revised Dec 2014.
  • Handle: RePEc:pes:wpaper:2014:no32
    as

    Download full text from publisher

    File URL: http://www.badania-gospodarcze.pl/images/Working_Papers/2014_No_32.pdf
    File Function: First version, 2014
    Download Restriction: no

    More about this item

    Keywords

    state aid; competitiveness of industries; hard coal mining industry in Poland and the EU; Polish mining enterprises;

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • F30 - International Economics - - International Finance - - - General
    • F60 - International Economics - - Economic Impacts of Globalization - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:pes:wpaper:2014:no32. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Adam P. Balcerzak). General contact details of provider: http://edirc.repec.org/data/ibgtopl.html .

    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.

    We have no references for this item. You can help adding them by using 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.