Cost of Energy Consumption and Return of Excise Tax on Motor Fuels vs. the Durability of Operations and Financial Sustainability in Polish Agriculture

Jacek Kulawik, Michał Soliwoda (), Agnieszka Kurdyś-Kujawska, Justyna Herda-Kopańska and Cezary Klimkowski
Additional contact information
Jacek Kulawik: Department of Finance and Risk Management, Institute of Agricultural and Food Economics, Świętokrzyska 20, 00-002 Warszawa, Poland
Michał Soliwoda: Department of Corporate Finance, Faculty of Economics and Sociology, University of Lodz, Rewolucji 1905 r. 39, 90-214 Łódź, Poland
Agnieszka Kurdyś-Kujawska: Department of Finance, Faculty of Economics, Koszalin University of Technology, Kwiatkowskiego 6E, 75-343 Koszalin, Poland
Justyna Herda-Kopańska: Department of Finance and Risk Management, Institute of Agricultural and Food Economics, Świętokrzyska 20, 00-002 Warszawa, Poland
Cezary Klimkowski: Department of Finance and Risk Management, Institute of Agricultural and Food Economics, Świętokrzyska 20, 00-002 Warszawa, Poland

Energies, 2023, vol. 17, issue 1, 1-22

Abstract: For the European Union, the course of the Community’s energy and climate policy as well as changes in the objectives and priorities of the Common Agricultural Policy, as reflected, among others, in rural development programs subject to ex ante, environmental and ex post evaluation, should be considered. Individual EU countries are still implementing their own programs focused on improving energy efficiency, energy modernisation and supporting renewable energy, and they also intervene in the energy market on an ad hoc basis, as was the case after the outbreak of the war in Ukraine. This article fits into such a broadly understood research perspective, and its primary goal is to identify the impact of the costs of energy consumption and the reimbursement of excise tax on motor fuels on the operational durability and financial sustainability of 103 farms belonging to the Polish FADN network, which in 2017–2021 implemented modernisation projects under the rural development program. Logistic and linear multivariate regression were used to estimate the strength, direction and significance of correlation relationships. It was found that relative energy costs were significantly negatively correlated with financial sustainability only in the linear model, while the impact of excise tax return was positive but not significant. Thus, an empirical proof of the advisability of a possible public intervention aimed at making farmers’ access to energy cheaper was obtained. All public interventions in agricultural energy use should be subject to careful and systematic ex ante, mid-term and ex post assessments based on sound program theory. It is necessary to identify the cause-and-effect chains, in which the regression proposed in the article may be helpful.

Keywords: cost of energy in agriculture; operational durability; financial sustainability; return of excise tax on motor fuels in agriculture; energy in EU agriculture; modernisation of farms; financing of investments in agriculture; Poland; the Polish FADN (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: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1996-1073/17/1/124/pdf (application/pdf)
https://www.mdpi.com/1996-1073/17/1/124/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:17:y:2023:i:1:p:124-:d:1307244

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().