What is the impact of high energy prices on industrial production costs and, consequently, also on the competitiveness of domestic industrial production vis-à-vis analogous industries operating in other countries?

In recent years, energy prices in Poland have been rising rapidly, which has been mainly due to the dominance of dirty combustion energy in the energy mix of energy sources, low expenditures on the modernization of the infrastructure of energy transmission networks and the development of renewable and emission-free energy sources, and the still ongoing practice of allocating large financial subsidies from the state's public finance system to maintain economically unviable deep coal mines and combustion energy installations. When energy prices are high, one of the negative consequences of this is higher costs for industrial production and for offering services. Thus, by high energy prices, industries in a certain country become less competitive with industries in other countries. For example, high energy prices in Poland, which are caused by the archaic structure of energy sources mainly based on dirty combustion energy, cause a decrease in the competitiveness of Polish industry in relation to the industry of the US and China, where green, pro-climate and pro-environmental investments in energy and other sectors of the economy are being developed on a large scale. In this economic race for the smooth implementation of the green transformation of energy and other sectors of the economy, those countries that will be the first and on the largest scale to implement the process of green transformation of the economy will win, then thanks to this the price of energy in these countries will quickly fall, industries will become more competitive in terms of production and cost, and in these countries industry will develop to the greatest extent and these countries will win economically in the 21st century. If the process of green transformation of energy and other sectors of the economy is not significantly accelerated in the next few years, the industry in Poland will become even more uncompetitive with the industry of China, the US and other countries in the future. The result will be a slowdown in the country's economic development and, in the next few years, perhaps a serious economic, financial and debt crisis in the state's public finance system. However, if the economic policy in Poland is appropriately modified and the issue of green energy transformation is seriously considered in it, then in the perspective of the next few years there should be a significant decline in energy prices, industrial production costs will fall and domestic industrial production will become more competitive, which will be an important element of effective economic development.

The key issues of the problematic sources of Poland's exceptionally deep energy cross in 2022 are described in my co-authored article below:

POLAND'S 2022 ENERGY CRISIS AS A RESULT OF THE WAR IN UKRAINE AND YEARS OF NEGLECT TO CARRY OUT A GREEN TRANSFORMATION OF THE ENERGY SECTOR

Article POLAND'S 2022 ENERGY CRISIS AS A RESULT OF THE WAR IN UKRAIN...

Key aspects of the green transformation of the economy as an important segment of building a green, sustainable economy are described in my article:

IMPLEMENTATION OF THE PRINCIPLES OF SUSTAINABLE ECONOMY DEVELOPMENT AS A KEY ELEMENT OF THE PRO-ECOLOGICAL TRANSFORMATION OF THE ECONOMY TOWARDS GREEN ECONOMY AND CIRCULAR ECONOMY

Article IMPLEMENTATION OF THE PRINCIPLES OF SUSTAINABLE ECONOMY DEVE...

I invite you to familiarize yourself with the issues described in the publications given above, as well as to scientific cooperation in these issues.

In view of the above, I address the following question to the esteemed community of scientists and researchers:

What is the impact of high energy prices on industrial production costs and, consequently, also on the competitiveness of domestic industrial production vis-à-vis analogous industries operating in other countries?

And what is your opinion about it?

What is your opinion on this issue?

Please answer,

I invite everyone to join the discussion,

Thank you very much,

Best wishes,

Dariusz Prokopowicz

The above text is entirely my own work written by me on the basis of my research.

In writing this text, I did not use other sources or automatic text generation systems.

Copyright by Dariusz Prokopowicz