External Costs for Agriculture from Lignite Extraction from the Złoczew Deposit

Benedykt Pepliński
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Benedykt Pepliński: Department of Law and Enterprise Management in Agribusiness, Faculty of Economics, Poznan University of Life Sciences, 60-637 Poznan, Poland

Energies, 2021, vol. 14, issue 9, 1-27

Abstract: In many circles, including in Poland, lignite is still viewed as a cheap source of energy, which is only possible if the external costs associated with mining and burning coal are not taken into account. In Poland, this is reflected in plans to open new Złoczew opencast lignite mines. In previous studies, the analysis of external costs has focused on the external costs of coal combustion and related pollutant emissions. This paper focuses on the extraction phase. The aim of the work here described was to estimate the external costs that agriculture may incur due to the formation of a depression funnel for the projected lignite mine in the Złoczew deposit. This paper discusses factors causing uncertainty in calculated estimates of external costs in agriculture, and characterizes the Bełchatów and Złoczew opencast mines. In the paper, a methodology for calculating external costs in livestock production is then proposed. In the next part of the study, the decrease in cereal and potato yields and in the number of cattle and pigs in the area of the cone of depression of the Bełchatów opencast mine, which has been in operation for 40 years, were estimated. The estimates obtained formed the basis for estimating external costs for the planned Złoczew lignite opencast. The analyses showed high external costs for plant production and much lower for animal production. The inclusion of the estimated external costs of 12.2 € × kWh −1 in the costs of electricity production will significantly worsen the profitability of launching this opencast. The paper discusses factors causing uncertainty in calculated estimates of external costs in agriculture, and characterizes the Bełchatów and Złoczew opencast mines. The discussion also shows that the level of losses incurred in crop production due to opencast coal mining is similar to the losses incurred in crop production in extremely dry years.

Keywords: external cost; opencast lignite; plant production; animal production; depression funnel (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
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