ENERGY USE IN A TRANSITIONAL ECONOMY - THE CASE OF POLAND

This paper provides a sectoral analysis of how energy use has changed in Poland since the 1970s, with particular emphasis on changes since the country began its transition from a centrally planned to a market economy in 1990. Total final energy use in 1991 was 25% below that in 1988 and the lowest since the mid-1970s. The most important factors behind the large decline in Polish energy use in 1990 were a sharp fall in industrial output and a huge drop in residential coal use driven by higher prices. Energy use declined by only 2% in 1991, which was less than the fail in GDP of 8%. Key factors that lessened the decrease in energy use after 1989 were a rise in energy intensity in many heavy industries and a shift toward greater use of cars and trucks in passenger and freight transport. Higher energy prices have had an evident impact on residential coal use, but in industry there was relatively little sign of energy conservation in 1991.