Shale Gas Extraction in Poland in the Context of Sustainable Development

Abstract

In June 2010 Poland was electrified by the big news: the country claimed to hold the largest shale gas reserves in Europe. Following the enthusiastic approach of the government and extractive companies, the public discourse has focused on the expected economic and geopolitical benefits of shale gas extraction. Meanwhile, the broader context of sustainability tends to be neglected. Some recent references to sustainable development in the context of shale gas extraction in Poland indicate that this concept needs a more thorough understanding. This article explores the following three aspects of sustainable development that need to be considered in the discussions on shale gas extraction in Poland. (1) Will the extracted natural capital be replaced with other forms of capital to ensure the well-being of future generations? (2) Will the formal institutions ensure that extractive companies prevent and mitigate all real and potential negative effects resulting from shale gas extraction? (3) How will the contribution of shale gas extraction to human well-being and national wealth be measured? The above issues link to important theoretical considerations within the concept of sustainable development, such as the weak vs. strong sustainability dilemma, internalizing external costs, and sustainability indicators (e.g. greening the GDP).

Keywords: shale gas, weak vs. strong sustainability, externalities, greening GDP, resource curse

JEL Classification: O13, Q20, Q32, Q41, R11, M14