Low-Carbon Rural Areas: How Are Polish Municipalities Financing the Green Future?

Abstract

The main aim of the research was to assess Polish rural municipalities’ investment activity connected with the development of a low-carbon economy, supported with EU funds in the 2007–2013 and 2014–2020 financial frameworks. The empirical study was based on data from Poland’s Ministry of Development Funds and Regional Policy, Ministry of Finance, and Statistics Poland, analysed through basic descriptive statistics and a logistic model to identify key factors influencing investment activity. The study showed that the greatest number of agreements on funding were, in fact, signed by rural municipalities in the period under analysis. The predominant measures undertaken during this time were the promotion of renewable energy sources and the improvement in energy efficiency. In the earlier financial framework, low-carbon economy projects in rural areas were more often implemented by municipalities with developing demographic potential, including those characterised by a higher level of enterprise development. In the subsequent financial framework, human capital turned out to be of key importance for the investment activity of rural municipalities. Experience gained from 2007–2013 positively influenced fund absorption in 2014–2020, improving project value, number, and support. The study confirmed that rural municipalities play a vital role in advancing a low-carbon economy, as local actions are key to achieving sustainable development and reducing greenhouse gas emissions.

Keywords

• municipalities
• rural areas
• regions
• renewable energy sources
• low-carbon economy
• sustainable development