Local factors and green transition–what drives investments in low-carbon economy in Poland?

The main objective of the study is to identify the main socio-economic, environmental and financial determinants of local investments supporting the development of a low-carbon economy in macro-regions in Poland in the EU financial perspectives 2007–2013 and 2014–2020. These conditions play a significant role in business practice, influencing efficiency of investment processes and effectiveness of actions towards low-carbon economy. The empirical research aimed to answer the following research questions: What is the role of municipalities and their subordinate units in the implementation of investments in developing a low-carbon economy in individual macro-regions of Poland? Did the experience of beneficiaries in absorbing EU funds for the development of a low-carbon economy in the 2007–2013 financial perspective translate into higher absorption of these funds in the next 2014–2020 financial perspective? Empirical research was conducted based on data from the Ministry of Development and Investment, Statistics Poland's Local Data Bank and the Ministry of Finance in Poland. The analysis showed that the high investment activity of local authorities in the first of the financial perspectives under review translated into even higher activity in the next one, with the degree of concentration in 2014–2020 no longer as high as before in individual macro-regions. The development of a low-carbon economy in macro-regions depends on a number of socio-economic (e.g., population density, net migration balance, and the number of business entities per 10,000 inhabitants), environmental factors (per capita water consumption in cubic meters), and financial factors (operating surplus and own revenue-generating potential per capita). These factors vary depending on the specifics of each macro-region, which can influence the unique approach to low-carbon economy development in individual areas. Research results have significant implications for the regional policy and management practices for EU funds. They suggest the necessity to develop support instruments for municipalities with lesser investment activity, increasing availability of training programs for local government employees, as well as promoting good practices at the local and regional levels.